Both the US and UK markets stalled ahead of the Fourth of July holiday and upcoming election. Global returns were mixed as US indices gained while the rest of the world lagged. Global interest rate sentiment is worsening as hopes of further rate cuts around the world diminish.
US equities see gains although trades slow for public holiday
Trade volumes are thinning leading up to the Fourth of July holiday. Positive movement in mega-cap growth stocks saw US indices, the S&P 500 (+0.5%), NASDAQ (+0.8%), and the DOW (+0.3%) rise. Tesla jumped +8.8% after the car manufacturer reported a less-than-expected drop in car delivery figures in its second quarter results. Nvidia dropped -1.4% as semiconductor chip stocks saw a mixed day of trading. Paramount surged +3.8% as reports circulated acquisition considerations by billionaire backed media conglomerate, IAC. In the fixed income securities market, the two-year US treasury bond yield slipped 3 bps to 4.74% followed by the 10-year bond yield dropping 4 bps to 4.44%.
Little activity coupled with poor sentiment saw a negative day of trading
European stocks closed lower on Tuesday as US treasury yields sitting at record highs provided the ECB with little incentive to cut interest rates. Following this, Europe’s Stoxx 600 dropped -0.4% whilst London’s FTSE 100 fell -0.6%. Across the board, the UK stalled in activity as institutions refrained from placing large bets ahead of Thursday’s election. However, J Sainsbury fell -2.9% after poor recent weather adversely impacted the sales volume of the company's supermarkets. France experienced the same movements as numerous Food Services businesses across Paris dropped as much as -5%.
A poor day of trading across Australasia as all but Hong Kong see negative returns
Mixed returns across Asia as the Nikkei 225 (-1.2%), KOSPI index (-0.8%), and CSI 300 (-0.2%) all fell, whilst the Hang Seng (+0.3%), and the Shanghai Composite (+0.1%) both gained slightly. In Australia, the ASX 200 dropped -0.4% as hopes of looser monetary policy regimes ceased following the release of the RBA meeting minutes. The RBA made clear that inflation remains a looming threat and that recent data indicates a need to maintain pricing controls until its next meeting in August. A boost in northern hemisphere fuel demand, particularly related to increased travel, drove oil prices higher, which positively impacted Woodside Energy’s share price (+3.1%). Bendigo and Adelaide Bank sunk -1.0% following the departure of its long-standing CEO, Richard Fennell. In New Zealand, the NZX 50 fell -0.1%.
Major commodity prices primarily fell
WTI Crude fell -0.5% to US$82.96/bbl. Gold stalled +0.0% to remain at US$2330.71/oz, and Iron Ore dropped -2.1% to US$108.00/MT.
NZ Headlines
ASX-listed mining company Santana Minerals, which claims to be developing New Zealand’s most significant discovery of gold in four decades, has applied for a secondary listing on the New Zealand Exchange. In an announcement today, Santana chief executive Damian Spring said more than 40% of the company’s shareholders had registered addresses in New Zealand, and ‘we’d like to see that grow’.
Shares in would-be gold miner New Talisman Gold Mines will resume trading this afternoon, after a whip-round of its directors raised enough money for compliance with ASX listing rules.
Today's Events
- SPG AGM