Market Announcements
Market Summary
Optimism about a possible end to the Iran war helped drive the New Zealand sharemarket higher Friday amid heightened anticipation ahead of SpaceX's debut on United States markets on Saturday. The S&P/NZX 50 Index ended 191.7 points (1.45%) higher to 13,393.87 on turnover of 38.89 million shares, worth $148.4m. There were 88 rises and 36 falls on the main board.
Brent crude prices came back to US$89.30 (NZ$153.38) a barrel – their lowest point in two months, and US 10-year bond yields dropped back by about 10 basis points to 4.47%.
In the US, the NZ-founded Rocket Lab finished at US$114.78, up 9.26%, on being included in the Nasdaq-100 index, effective from June 22. Domestically, the BNZ-BusinessNZ Performance of Manufacturing Index (PMI) contracted slightly in May to 49.9, down from 50.4 in April and 52.8 in March. The long-term average for the index is 52.5. The data follows a string of weaker second-tier data.
A2 Milk, which has been under pressure in recent weeks, ended 69c or 10.49% higher at $7.27. Fisher & Paykel Healthcare – the market’s biggest stock – closed 67c or 1.73% higher at $39.45.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 39 points higher at 8853.
- close [Morningstar with AAP]: Australia's share market has posted its best week in two months after days of escalating attacks between the US and Iran gave way to optimism around a potential peace deal.
The S&P/ASX200 gained 170.8 points on Friday, up 1.98 per cent, to 8,804, as the broader All Ordinaries advanced 169.4 points, or 1.92 per cent, to 9,006.1.
The top 200 gained more than two per cent since Monday, its best performance since early April, buoyed by Middle East peace deal hopes and soft local economic data prompting a dovish repricing of Australia's interest rate outlook.
Both factors provided tailwinds to the consumer cyclicals sector, which outperformed the bourse with a rally of more than eight per cent over the five sessions, followed by staples, which gained 7.5 per cent.
Despite the good news, traders remain wary of yet another promised peace deal.
"For me, this peace deal is no different to any other, and I think the evidence of that in the sectors, which have done well here today and this week, have not been the ones you might expect to do from from a peace deal," IG market analyst Tony Sycamore told AAP.
"It's been ones that have benefited from soft data and the pretty drastic repricing we're seeing in rate expectations.
Basic materials rebounded four per cent, led by gold miners as the precious metal rebounded after five weeks of selling put the commodity in a technical bear market (more than 20 per cent down from recent highs).
Spot gold is trading at $US4,180 ($A5,942) an ounce.
Mega miners BHP, Rio Tinto and Fortescue each gained between two and more than three per cent, as copper prices rebounded but iron ore futures held onto their recent losses.
Banks helped lift the index, as the financials sector gained 1.6 per cent in a broad sector surge that helped snap a two-week losing streak for the segment.
Energy stocks underperformed, slipping 0.5 per cent on Friday and roughly flat for the week, as oil prices fell to their lowest price since mid-April.
In company news, Magellan Financial Group gained more than five per cent after the competition watchdog approved its merger with Barrenjoey.
The Australian dollar is buying 70.33 US cents, up from 70.02 US cents on Thursday at 5pm.
The Aussie has slipped from recent highs near 72.80 US cents as the Reserve Bank and Federal Reserve's respective interest rate outlooks diverged, but AMP chief economist Shane Oliver noted the RBA's hiking cycle wasn't necessarily over.
"The RBA is expected to leave rates on hold at its June meeting this coming Tuesday, but it's also likely to retain mild a tightening bias given concerns about inflation remaining above target for too long," Dr Oliver said.
"We are continuing to allow for a further rise in interest rates with the next hike likely to come in August."
ON THE ASX:
The S&P/ASX200 gained 170.8 points, or 1.98 per cent, to 8,804
The broader All Ordinaries rose by 169.4 points, or 1.92 per cent, to 9,006.1
The NZX 50 added 65.21 points (0.48%) to 13459.08
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA climbed 0.7% to 51,202.26, the S&P 500 gained 0.5% to 7,431.46 and the Nasdaq climbed 0.3% to 25,888.84.
Among S&P 500 companies, the top three gainers were The Mosaic Co MOS surging 7.59%, Albemarle Corp ALB jumped 7.44%, and Seagate Technology Holdings PLC STX lifted 7.22%.
The biggest decliners were EchoStar Corp SATS which dropped 10.90%, Adobe Inc ADBE fell 6.76%, and Carvana Co CVNA lost 5.49%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index lifted 1.1% to 4,031.51 and the Shenzhen Composite Index added 1% to 2,697.17.
Hong Kong shares ended higher. The benchmark Hang Seng Index gained 1.9% to 24,718.10.
Japanese shares ended higher. The Nikkei Stock Average lifted 2.8% to 66,020.04.
India shares ended higher. The BSE SENSEX gained 2.3% to 75,527.95.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 1.6% to 10,471.72. In Europe, shares closed higher. The Germany's DAX added 1.8% to 24,635.30, and the France's CAC 40 gained 1.8% to 8,350.87
