Image Souce: Krish Capital Pty Ltd

Index Update: On 10th December 2024, the broader NZ market ended in red amidst significant sell-off in the financials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.61% to end the session at 12,723.370 and S&P/NZX 20 Index fell by 0.82% to 7,646.970. Also, S&P/NZX 10 Index fell by 1.00%. S&P/NZX All Financials witnessed a fall of 2.40%. However, S&P/NZX All Materials rose by 2.80%.  

Macro Update: As per FEU dated 29th November 2024, the global markets have been responding to news around the US President-elect Trump’s policy plans and cabinet choices. The dairy sector witnessed a strong start to the season. Notably, the international trade for October was broadly similar to the previous month. The monthly trade deficit remained ~$1.5 Bn as goods exports and imports rose. As per the release, overall, the US equites have made robust post-election gains, and the dollar index has strengthened.  

Top Market Movers: Among top gainers, Hallenstein Glasson Holdings Limited (NZX: HLG) witnessed a rise of 6.54% to end the session at $7.49 per share. On the other hand, Being AI Limited (NZX: BAI) declined by 9.59% to $0.33 per share. 

Commodity Update: The U.S. dollar reached its highest point this month against the yen on Tuesday, as investors awaited U.S. inflation data for clues on future Federal Reserve policy. Despite strong job growth in November, the unemployment rate rising to 4.2% pointed to a softer labour market, possibly prompting the Fed to cut rates soon. In the commodities market, gold rose by 0.55% to $2,689.60, silver dipped by 0.14% to $32.56, and copper fell 0.31% to $9,205.50. Brent crude dropped by 0.20% to $72.01, supported by geopolitical tensions and China's plans for more economic stimulus. 

A graph of stock market Description automatically generated with medium confidence

Source: Trading View, Analysis: Kalkine Group  

In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. Moreover, since the break-out, the index has been forming higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading near its midpoint, indicating neutral market sentiment in the short-term. 

 
Our Stance: It could be said that the broader NZ market was impacted by the decline in financials sector. The market players are expected to maintain their focus on key macroeconomic data releases in the US. CPI data and Producer price index data, expected to be released on 11th December and 12th December, respectively, are some of the key releases which might decide the direction of broader equity markets. On 12th December, Stats NZ would be releasing data about electronic card transactions (November 2024).  

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!