tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo close ad
tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, January 24th, 7:00PM

Investments

rss
The Markets

NZ tech stocks hit hard as US Fed signals rate hikes

New Zealand shares tumbled with Wall Street indices after United States Federal Reserve meeting minutes suggested the central bank might need to raise rates sooner than expected.

Thursday, January 6th 2022, 6:43PM

by BusinessDesk

The S&P/NZX 50 Index fell 167 points, or 1.2%, to 12983.01. Turnover was $118.8 million.

Investors in the US reacted strongly to the minutes from the Federal Reserve’s most recent meeting, which showed most members of the committee were thinking interest rates would need to go higher.

This is due to both persistent inflation, which it had previously considered transitory, as well as a tight labour market which could be considered a sign of maximum employment.

Non-farm payroll data, the most-watched employment measure, is set to be released on Friday night and will give a further indication on how soon the central bank may raise rates.

The American 10-year Treasury yield rose to its highest level since April last year, while shorter-term bonds – which indicate interest rate expectations – hit their highest levels since early 2020.

Wall Street indices dropped dramatically in response, with the tech-heavy Nasdaq tumbling more than 3% and the benchmark S&P 500 down almost 2%.

Higher interest rates increase borrowing costs for businesses and consumers which can result in less spending. Stock valuations also decline as interest rates are used to discount future cash flows.

The kiwi dollar was trading at 68.26 US cents prior to the release of the minutes but fell sharply to 68.01 cents and continued to decline to 67.69 cents by 5pm.

NZ government bond yields also rose but remained below their 12-month highs, the 10-year bond had the largest move – gaining almost 6 basis points.

NZX-listed tech stocks were among the worst-hit today, taking their cue from highly-priced technology companies overseas.

Church donation platform Pushpay Holdings led the decline as it fell 3.9% to $1.25, cinema software company Vista Group was down 3.7% at $2.32, while fleet management company Eroad dropped 3.2% to $4.84.

The index’s biggest stock, Fisher & Paykel Healthcare, also fell 2% to $32.50, while Port of Tauranga hit a near 12-month low at $6.54.

Media companies NZME and Sky Network Television both fell, 4.2% to $1.38 and 2.6% to $2.58 respectively.

While most stocks moved lower, there were some gains, particularly among stocks that have positive exposure to economic growth. 

Vulcan Steel jumped 7.1% to $11.01, on light volume, while its competitor Steel & Tube Holdings gained 1.2% at $1.66.

Restaurant Brands NZ had the biggest gain on the top 50 index, climbing 1.4% to $14.01.

Tags: Market Close

« Infratil boosts NZX 50 in first session of 2022NZ shares flat as investors wait for job data »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

AM Update - Your morning business news update

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.60 3.65 4.15 4.69
ANZ 4.79 4.25 4.95 5.35
ANZ Blueprint to Build 2.03 - - -
ANZ Special - 3.65 4.35 4.75
ASB Back My Build 2.29 - - -
ASB Bank 4.60 3.65 4.15 4.69
Avanti Finance 4.55 - - -
Basecorp Finance 5.49 - - -
Bluestone 4.09 4.29 4.86 5.09
BNZ - Classic - 3.65 4.35 4.69
BNZ - Mortgage One 5.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Rapid Repay 4.95 - - -
BNZ - Std, FlyBuys 4.95 4.25 4.95 5.29
BNZ - TotalMoney 4.95 - - -
CFML Loans 5.35 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 3.59 4.09 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 5.25 4.25 4.75 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 4.25 3.49 4.05 4.55
Kainga Ora 4.60 4.03 4.68 5.07
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 4.25 4.54 5.20 5.54
Kiwibank - Offset 4.25 - - -
Kiwibank Special 4.25 3.69 4.35 4.69
Liberty 4.84 - - -
Nelson Building Society 4.95 4.29 4.85 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 3.54 3.89 4.09
SBS Bank 4.79 3.95 4.49 4.85
SBS Bank Special - 3.45 3.99 4.35
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - 3.45 - -
The Co-operative Bank - Owner Occ 4.75 3.65 4.35 4.69
The Co-operative Bank - Standard 4.75 4.15 4.85 5.19
TSB Bank 5.34 4.09 4.74 4.99
TSB Special 4.54 3.29 3.94 4.19
Unity 5.65 4.15 4.60 -
Wairarapa Building Society 4.99 4.05 4.50 -
Lender Flt 1yr 2yr 3yr
Westpac 5.09 4.29 4.95 5.29
Westpac - Offset 5.09 - - -
Westpac Special - 3.69 4.35 4.69
Median 4.77 3.69 4.42 4.69

Last updated: 19 January 2022 12:41pm

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com