NZ EQUITIES RESEARCH

Z + Chevron NZ = Star Performer

The Commerce Commission’s clearance of the Chevron NZ acquisition enables Z Energy (ZEL) to take its business to the next level.

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Earnings Mixed = Stocks Mixed

Global markets moved modestly, with investors anxiously awaiting the US jobs report, while earnings continued to boost and deflate sentiment.

US stocks slightly down as investors await Friday’s jobs report

Despite an early rally on crude’s boost, US stocks dipped slightly lower as investors remained wary ahead of Friday’s jobs report. Emerging Markets suffered as a result of a stronger USD, while indices remained at three-week lows. At the time of writing, the S&P 500 and the Dow Jones Industrial Average had both slipped -0.1%.

L Brands tumbled -10.8% after quarter-sales missed estimates. Consumer companies Lululemon (-3.2%) and Nike (-1.8%) dragged, with Fitbit slumping -17.4% as sales forecasts shocked investors. Tesla Motors dropped -4.4% on concerns the company can’t deliver cars ahead of schedule. Yahoo!, which owns a stake in Alibaba Group (+4.1%), jumped +2.6% after the Chinese e-commerce company’s quarterly revenue surpassed estimates. Kraft Heinz added +3.8% as profit smashed estimates.

European, UK stocks halt drop with modest gains as earnings continue

European equities halted a steep four-day drop amid positive earnings and crude advancing. The Stoxx Europe 600 climbed +0.3% as banks extended gains.  Repsol SA jumped +4.7% as the performance at the refining and chemicals division compensated for low oil prices, as profits beat predictions. Shares in Greece rallied, while markets including Switzerland, Denmark, Sweden and Finland were closed for holidays.

The UK’s FTSE 100 was slightly higher, up +0.1% as positivity in some companies offset disappointment in others. BT Group advanced +2.6%, leading telecom shares higher, while Wm Morrison added +2.4%. Antofagasta (+1.6%) and Anglo American (+1.6%) climbed on oil. Rolls Royce dropped -4.7% on saying full-year earnings will be weighted toward the second half, warning of “very, very small” profit in the first six months. Centrica tumbled -9.8% after saying it will sell some of its share capital to pay for acquisitions and reduce debt.

Asian markets on track for large losing streak, Japanese markets closed

The MSCI Asia Pacific Index furthered it’s course for the longest losing streak in almost five months, dropping -0.3% amid global growth concerns. Positive performances from AIA Group (+2.0%) and Beijing Enterprise Water (+1.9%) helped offset losses, with the biggest gain in Alibaba (+4.1%). Markets remained closed in Japan, with Thailand, South Korea and Indonesia also shut.

Japanese markets remained closed. They will reopen on Friday.

ASX 200 rises as NBA buck trend amid encouraging profits

The ASX 200 rose +0.2% as National Bank of Australia climbed +2.0% after posting positive first-half profit to buck a trend among lenders.

Crude adds, gold slips with iron ore

WTI crude added +1.2% to US$44.31, while gold slipped -0.6% to US$1,271.66. Iron Ore dropped –US$1 to US$61/MT.

 

Today’s events

RBA: Statement on Monetary Policy

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