NZ EQUITIES

Refining NZ: Throughput Up, Margin Down

Following a share price pullback over recent months and a mixed March/April report, Refining NZ's medium-term outlook appears promising.

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Western Markets Rise, Asia Slides

A change of perspective helped the West rally, after investors looked to industries that would benefit from higher rates, while housing data boosted sentiment. Asian markets slid as the Yen continued to strengthen.

US stocks climb most in 2 months as housing data settles rate concerns

US stocks jumped the most in two months after increasing speculation the Fed will hike interest rates spurred a rally in financials, while promising housing data suggested the economy could withstand higher rates. At the time of writing, the S&P 500 and the Dow Jones Industrial Average had climbed +1.3% and 1.1%. 

Banks rose, with JP Morgan and Citigroup both notching up +1.4%. Toll Brothers (+7.8%) jumped the most in three years after the luxury builder’s quarterly profit topped estimates, leading a gauge of homebuilders towards the biggest climb in four months. A healthcare rally saw Gilead (+3.2%) and Celgene (+2.7%) advance. EBay and Alphabet jumped +2.6% and +2.0%, while Microsoft rose +2.9%, the most in almost 3 months, to lead tech shares higher. 

European markets surge on weaker Euro, UK stocks up with lenders

European equities rallied the most in six weeks as the Euro slid and investors looked for companies that would benefit from a US rate increase. The Stoxx Europe 600 advanced +2.2%, with all industry groups climbing. The Euro wavered near a two-month low in response to the potential of higher US rates. Bayer AG climbed +3.2% as Monsanto (+2.7%) was said to be poised to reject the German company’s US$62bn takeover offer. SEB SA rallied +11.0% after agreeing to buy silverware and coffee-machine maker WMF for US$1.8bn.

The UK’s FTSE 100 pushed +0.5% higher as lenders rallied. Royal Bank of Scotland and Lloyds Banking jumped +4.8% and +3.1% respectively. Kingfisher advanced +2.9% after reporting an increase in sales, while Tesco surged +6.8% as an outperform rating was reiterated. Soft drink bottler Coca-Cola HBC fell -3.0% after Leventis family members sold out. 

Asia, Japan stocks decline as yen continues to strengthen, rate concerns

Asian markets declined as the Yen continued to strengthen, with equities paring losses in late trading after heading toward the lowest levels in seven weeks. The MSCI Asia Pacific Index slid -0.2% after being down -0.9%. Beijing Enterprise Water (+3.8%) and China Railway (+2.9%) snapped the trend to rise higher. US-listed Chinese technology firms Baidu (+3.5%) and NetEase (+4.2%) also rallied.

Japan’s Topix continued losses as electric appliance makers and car builders dragged the benchmark down -0.9%. Toyota (-1.4%) and Mazda (-3.1%) dropped on a stronger yen, while electronic products maker Toshiba fell -3.5%.

ASX 200 down with other Asian markets

The ASX 200 fell -0.4%, following Asian markets down on US rate concerns.

Crude advances, gold and iron ore slide

WTI crude climbed +1.1% to US$47.98, while gold retreated -1.6% to US$1,229.51. Iron ore fell a further US$1 to US$53/MT.

 

Today’s events

FY16 result: AFT, ARV

1H16 result: SAN, SKO, TWR

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