Daily dose of financial insights for investors and traders; plus six companies to watch including Fortescue Metals and Tesla

Jessica Amir
Market Strategist

Summary:  Five Minute Daily Dose of Financial Insights for Investors and Traders; covering what to watch this week in economic news, what could move markets and why to watch the NZDAUD. Plus, the latest from these six companies; Fortescue, Oz Minerals, Cisco, Ross Stores, Tesla, and Twitter.

What you need to know about markets now

  • The major US indices closed in the red last week, but the S&P 500 managed to hold onto an ~11% gain from October 10, while the Nasdaq 100 managed to hold its gain of 9.2% since then. US stock and bond markets will be closed for Thanksgiving holiday Thursday.
  • The Australian share market closed on the back foot as well last week, but holds a gain of 10.4% from October 3. The futures suggest the ASX200 could open 0.3% up on Monday.
  • In Asia, Hong Kong’s Hang Seng ended the week up, extending its three-week rebound of 21%. The Futures indicate the Hang Seng could open 0.4% lower.
  • The economic focus this week is on; OECD Economic Outlook Tuesday, FOMC minutes on Wednesday, and more Fed Speeches will be on Tuesday which could provide more hints on how high US rates may go and may cause volatility in the indices and invoke fear selling like we saw last week.
  • In China, focus this week will be on; will authorities responding to the first Covid-related death in almost six months, sparking concerns it could lead to tighter restrictions, despite China implementing new 20-point tweaking covid restriction plan.
  • In commodities focus is on those pegged to Chinese demand, such as iron ore, copper, and lithium. Speaking of iron ore; it could be volatile week for iron ore and iron ore stocks as India removed the export tax on steel products including iron ore. Oil will also be in focus with WTI falling 1.9% and after suffering its biggest weekly drop since April, losing 10% last week. Oil is now trading at $80.00, its lowest level since September.
  • In earnings: Virgin Money, Deere & Co, Dell will be a focus this week with their earnings to be released.
  • In FX: focus will be on NZD with RBNZ to poised to hike by 0.75%. A currency to watch will be the NZDAUD – given the RBNZ is hiking harder than the RBA can and this theoretically supports the NZD vs the AUD. 

Six companies to be across include

  1. Fortescue (FMG) with iron ore falling 1.4% but holding onto a monthly gain of 27%. Fortescue Metals shares have gained about 36% in three week after China announced its property rescue plan.
  2. Oz Minerals (OZL) will also be focus down under after BHP increased its takeover offer for the firm. The Copper company OZL has gained 70% since July.
  3. Cisco (CSCO) will also be a focus this week after rising 2.6% on Friday, extending its rebound after reporting stronger than expected earnings and guidance last week. 
  4. Clothing company Ross Stores (ROSS) rose 10% on Friday with traders expecting good Black Friday sales. 
  5. Tesla (TSLA) is in the spotlight after it recalled over 321,000 vehicles in the US because of a tail light issue. It is the latest of multiple Tesla recalls in the US in recent months, including one recall involving over 40,000 vehicles for a possible problem with the EV steering system.
  6. Twitter (TWTR) is also in the news with Elon Musk considering firing more employees, allegedly in sales and partnerships. 


For a global look at markets – tune into our Podcast.



 

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