InvestNow News – 20th Dec 19 – ANZ Investments – Weekly Snapshot – 16 December 2019
December 16th 2019
US equity markets rose last week as the S&P 500 touched an all-time high of 3182 following news that US President Donald Trump had agreed to delay the imposition of new tariffs. The benchmark index ended the week up around 0.7%
In New Zealand, the NZX 50 finished flat for the week with falls in A2 Milk and Z Energy overwhelming an otherwise positive tone. Z Energy share price fell 13% on Friday following a surprise earnings downgrade and cut to their dividend. The company cited weak margins and tough retail competition as reasons for the profit downgrade. A2 Milk share price fell on Monday after CEO Jayne Hrdlicka unexpectedly stepped down although it subsequently recovered to end the week up 1%.
What’s happening in markets
The UK election dominated market attention last week, with long lines reported at polling stations throughout the country. Results showed a strong swing towards Boris Johnson’s Conservative Party, who recorded their biggest victory since 1987. The Conservatives won 365 seats and hold a majority of 78 seats after seizing victories across traditional Labour areas in the North and Midlands. The British Pound rallied strongly on the news strengthening to 0.4950 versus the Kiwi. Labour’s share of the vote collapsed although leader Jeremy Corbyn refused to resign. With an electoral mandate in hand, Boris Johnson will now focus his energies on “getting Brexit done”.