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On Tuesday night the Treasurer threw a cool $95bn at the economy and yesterday the local market plunged -50 points. The two are nevertheless largely uncorrelated. Our market fell because Wall Street fell.
This is most evident in the technology sector recovering 0.8% yesterday when all about, other than telcos (+0.2%), closed down. The Nasdaq had plunged early on Tuesday night but made a full recovery.
Given the big ticket items in the budget were well telegraphed I did note yesterday that perhaps the “clanger” would be a confirmed border closure until at least mid-2022. Alan Joyce’s rose-tinted glasses fogged up as Qantas ((QAN)) fell -3.4% yesterday and Sydney Airport ((SYD)) -4.8%, helping industrials to a -1.6% loss.
Well in the end I was right – it
was a quiet couple of days ahead of the budget, based on the ASX200 rising a net 17 points over Monday and Tuesday. And I was right in suggesting 7100 should offer support, as while the index did crash through yesterday to be down almost -100 points by midday, it recovered somewhat in the afternoon to close just under that level.
It’s a moot point nonetheless, given Wall Street has had another swoon overnight and our futures are down -45 points this morning.
It appears Monday’s session was indeed technically and thus algo driven on the break-up through 7100 more than one of investor demand. For investors wasted no time in reversing that trade yesterday. To a great extent everything that went up on Monday came back down yesterday.
Jarden Brief: Threat of inflation pushes US market into red
11 May, 2021 08:06 PM
7 minutes to read
Investors are becoming increasingly worried about inflation. Photo / Getty Images
NZ Herald
Coming Up Today: The US will release CPI numbers which may provide a further data point to feed the growing concern around inflation. CSR (ASX) and Pushpay (NZX) are both scheduled to publish full year results.
New Zealand:
New Zealand equities were in the red yesterday with the S&P/NZX 50 trading down 0.2 per cent to 12,639.2 points at the close.
Sector gains included Industrials and Utilities, each leading the way with 0.5 and 0.3 per cent increases respectively.
ASX closes at record high
Share
A casino bidding war and another surge in commodity prices powered the local sharemarket to a record closing high on Monday.
The S&P/ASX 200 Index ended the session up 92 points, or 1.3 per cent, at 7172.8, passing the previous record close of 7162.5 on February 20 last year.
Crown Resorts jumped 7.3 per cent to $13 on the back of news that it has received a proposal to merge with The Star Entertainment Group by way of a scheme of arrangement.
Star estimated that a merger with Crown would result in indicative cost synergies of between $150 million and $200 million a year.
Jarden Brief: Major US pipeline hit by cyber attack
10 May, 2021 08:12 PM
7 minutes to read
Colonial Pipeline transports more than 2.5 million barrels of fuel every day. Photo / AP
NZ Herald
Coming Up Today: The UK will release GDP figures. Investors may be interested in the impact that these numbers have for continued European stimulus. Chinese CPI numbers are to be released which will provide another data point in the building inflation narrative. In New Zealand, Meridian will hold its investor day, the ANZ truck-o-meter stats will be released and April card spending numbers will be announced.
New Zealand:
The S&P/NZX 50 traded in the red yesterday with the index dropping 0.6 per cent to 12,659.0 points.