Markets Wait for Jobs Data

2 December 2022

New Zealand Market Movers 

The New Zealand market (NZX 50 Index, +0.9%) rose on optimism that the US central bank can start to slow the pace of rate hikes. The New Zealand dollar also found support and is now trading at a three-month high against the US dollar ($0.6363) and an eight-month high against the Australian dollar ($0.93.58).  

Exporters climbed on Thursday, including A2 Milk (+2.1%), Scales Corp (+5.5%), and Air NZ (+1.9%) on growing optimism that China won’t lock down again, at least to the extent that they have in the past. Additionally, the week’s earlier best performers, Fisher & Paykel (+3.1%) and Gentrack (+2.9%) continued register healthy gains. 

In other news, Tourism Holdings (-0.3%) completed its merger with Australia’s Apollo Tourism & Leisure. THL shares will commence trading on the ASX, under the name Tourism Holdings Rentals Limited. 

Australia Market Movers 

The Australian market (ASX 200 Index, +1.0%) advanced on Thursday on the back of the Materials (+2.7%), Utilities (+1.2%) and Real Estate (+1.1%). 

Technology (+0.9%) also performed well, tracking the US Nasdaq index on Wednesday, with Block (+7.4%), Xero (+6.2%), and Megaport (+4.6%) all jumping. Australian bond yields have fallen as expectations that the Reserve Bank of Australia will decide not to hike interest rates next week after its policy meeting on Tuesday. 

Europe Market Movers  

European markets (Stoxx 600 Index, +0.8%) advanced to a six-month high in reaction to the chance that the US Federal Reserve will slow the pace of rate hike as early as this month. 

US Market Movers 

US markets (S&P 500 Index ) are flat clawing back from a minor loss in the a choppy session as, US manufacturing data contracted in November for the first time since May 2020 as output weakened in the face of shrinking orders. Markets also waiting in anticipation to the most important jobs report to be released at 2.30am NZDT. Markets will be looking for cooling in the jobs markets, but not enough to disagree with the possibility that the economy is headed for a soft landing. Somewhere in the vicinity of 190K jobs might be the goldilocks value the market is looking for. 

Costco (-6.5%) sold off after announcing sales slowed to +5.7% in November from +7.7% in October, an unfavourable sign in the lead up to holiday shopping season. Further, Costco also reported a -10.1% decline in online sales during the period. 

What Markets will be Watching this Week (UTC +13) 

Monday 
NZ Kiwi Property Group earnings 

Tuesday 
NZ Fisher & Paykel Healthcare earnings 

EA Economic Sentiment NOV 

Wednesday 
EA Inflation Rate YoY November 

Thursday 
US ADP Employment Change November 

US JOLTS Job Openings October 

US Salesforce earnings 

EA Unemployment Rate October 

Friday 
US Personal Income MoM OCT 

Saturday 
US Non Farm Payrolls November 

The New Zealand market (NZX 50 Index, +0.9%) rose on optimism that the US central bank can start to slow the pace of rate hikes. The New Zealand dollar also found support and is now trading at a three-month high against the US dollar ($0.6363) and an eight-month high against the Australian dollar ($0.93.58).  

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