New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

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<h2>Morning News Summary<br>BoE&nbsp;Hikes, ECB Continues QE — Stocks Like It</h2>
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<p>Equity markets&nbsp;traded mixed on Thursday after three major central banks pulled on different policy levers.&nbsp;​​​​​​​</p>
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<h3>Mixed follow-up to yesterday's Fed policy decision</h3>
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<p>US stock performances diverged on Thursday after the Federal Reserve on Wednesday announced an accelerated tapering of its asset-purchasing programme and indicated it would likely hike interest rates three times in 2022, stating that the US economy no longer needs policy support as inflation has soared. Having sent bond yields higher immediately after the Fed's announcement, investors had second thoughts on Friday, with the US 2-year Treasury yield dropping back -6pb to 0.63% and the 10-year down -3bp to 1.43%. Initial jobless claims increased 18,000 to 206,000. Investors took profits on mega-cap growth stocks like <strong>Tesla</strong> (-4.0%), <strong>Apple</strong> (-2.6%), <strong>Microsoft</strong> (-2.0%) and <strong>Amazon</strong> (-1.9%) — weighing down the tech-heavy Nasdaq (-1.2%) — and shifted into cyclicals and defensives, lifting the <strong>Dow Jones</strong> +0.5%; it all averaged out in the <strong>S&amp;P 500</strong>, which was flat. <strong>Adobe</strong> fell -9.4% following relatively disappointing Q4 results and FY22 guidance. <strong>Accenture</strong> jumped +7.9% after a strong fiscal first-quarter earnings result and raising its 2022 outlook. <strong>Qantas</strong> (-0.6%) chose Europe's <strong>Airbus</strong> (+3.0%) as the preferred supplier to replace its domestic Boeing (-1.8%) fleet.</p>
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<h3>European stocks jump as ECB dithers on ending QE while inflation runs hot; FTSE up despite&nbsp;BoE&nbsp;surprising with rate hike</h3>
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<p>The&nbsp;Stoxx&nbsp;600&nbsp;climbed +1.3% after the European Central Bank kept rates unchanged and effectively eased off the brakes on its bond buying programmes even as it raised its inflation forecast for next year from +1.7% in September to +3.2%. The ECB will wind down its&nbsp;Pandemic Emergency Purchase Programme as scheduled, but will instead increase bond buying&nbsp;in its&nbsp;Asset Purchase Programme ​​​​​​​in order to provide continued support to the&nbsp;Eurozone's&nbsp;Omicron-affected economy.&nbsp;Swiss&nbsp;pharma&nbsp;company&nbsp;Novartis&nbsp;(+5.6%) launched a share buyback. London’s&nbsp;FTSE 100&nbsp;gained +1.4% as the Bank of England surprised investors by raising its interest rates to 0.25% from 0.1% to try and curb high inflation. Banks such as&nbsp;Lloyds&nbsp;(+5.0%),&nbsp;Barclays&nbsp;(+4.1%) and&nbsp;HSBC&nbsp;(+3.8%) all&nbsp;benefitted&nbsp;from the&nbsp;BoE&nbsp;announcement. ​​​​​​​Boohoo&nbsp;(-22.3%)&nbsp;lived up to its name, warning that 2021–22 earnings may come in below expectations.</p>
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<h3>Asian investors take the Fed's announcement in their stride</h3>
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<p>Asian shares closed flat or in the green after the Fed’s interest rate hike announcement. China’s Shanghai Composite and CSI 300 gained +0.8% and 0.6% respectively. Japan’s Nikkei 225 increased +2.1%, South Korea’s KOSPI rose +0.6% and Hong Kong’s Hang Seng climbed +0.2%. The ASX 200 slid -0.4%, weighed down by CSL (-8.2%) as trading resumed after it completed an A$6.3b equity raise, the biggest in ASX history, to fund its acquisition of Vifor Pharma. Six of the eleven sectors closed in the red, while tech increased +2.1%, tracking Wednesday's +2.7% gain in the US. Mesoblast recovered +10.9% after saying it would conduct another phase three trial of its drug for back pain, following feedback from the US FDA. Miner IGO gained +1.4% after confirming a A$1.1b bid for Western Areas (+5.6%). The NZX 50 lost -0.7%, with Sanford falling -3.4%. Chorus tumbled -2.2% after the Commerce Commission issued its final determination on how much revenue the company can earn from its broadband fibre network.</p>
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<h3>WTI Crude, gold and iron all up +2%​​​​​​​</h3>
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<p>WTI crude&nbsp;increased +2.0% to US$72.93/bbl,&nbsp;gold&nbsp;gained +2.0% to US$1,799.10/oz and&nbsp;iron ore&nbsp;also rose +2.0%&nbsp;to US$109.22/MT.</p>
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Morning News Summary BoE&nbsp;Hikes, ECB Continues QE — Stocks Like It


Equity markets&nbsp;traded mixed on Thursday after three major central banks pulled on different policy levers.&nbsp;​​​​​​​



Mixed follow-up to yesterday's Fed policy decision


US stock performances diverged on Thursday after the Federal Reserve on Wednesday announced an accelerated tapering of its asset-purchasing programme and indicated it would likely hike interest rates three times in 2022, stating that the US economy no longer needs policy support as inflation has soared. Having sent bond yields higher immediately after the Fed's announcement, investors had second thoughts on Friday, with the US 2-year Treasury yield dropping back -6pb to 0.63% and the 10-year down -3bp to 1.43%. Initial jobless claims increased 18,000 to 206,000. Investors took profits on mega-cap growth stocks like Tesla (-4.0%), Apple (-2.6%), Microsoft (-2.0%) and Amazon (-1.9%) — weighing down the tech-heavy Nasdaq (-1.2%) — and shifted into cyclicals and defensives, lifting the Dow Jones +0.5%; it all averaged out in the S&amp;P 500, which was flat. Adobe fell -9.4% following relatively disappointing Q4 results and FY22 guidance. Accenture jumped +7.9% after a strong fiscal first-quarter earnings result and raising its 2022 outlook. Qantas (-0.6%) chose Europe's Airbus (+3.0%) as the preferred supplier to replace its domestic Boeing (-1.8%) fleet.


European stocks jump as ECB dithers on ending QE while inflation runs hot; FTSE up despite&nbsp;BoE&nbsp;surprising with rate hike


The&nbsp;Stoxx&nbsp;600&nbsp;climbed +1.3% after the European Central Bank kept rates unchanged and effectively eased off the brakes on its bond buying programmes even as it raised its inflation forecast for next year from +1.7% in September to +3.2%. The ECB will wind down its&nbsp;Pandemic Emergency Purchase Programme as scheduled, but will instead increase bond buying&nbsp;in its&nbsp;Asset Purchase Programme ​​​​​​​in order to provide continued support to the&nbsp;Eurozone's&nbsp;Omicron-affected economy.&nbsp;Swiss&nbsp;pharma&nbsp;company&nbsp;Novartis&nbsp;(+5.6%) launched a share buyback. London’s&nbsp;FTSE 100&nbsp;gained +1.4% as the Bank of England surprised investors by raising its interest rates to 0.25% from 0.1% to try and curb high inflation. Banks such as&nbsp;Lloyds&nbsp;(+5.0%),&nbsp;Barclays&nbsp;(+4.1%) and&nbsp;HSBC&nbsp;(+3.8%) all&nbsp;benefitted&nbsp;from the&nbsp;BoE&nbsp;announcement. ​​​​​​​Boohoo&nbsp;(-22.3%)&nbsp;lived up to its name, warning that 2021–22 earnings may come in below expectations.


Asian investors take the Fed's announcement in their stride


Asian shares closed flat or in the green after the Fed’s interest rate hike announcement. China’s Shanghai Composite and CSI 300 gained +0.8% and 0.6% respectively. Japan’s Nikkei 225 increased +2.1%, South Korea’s KOSPI rose +0.6% and Hong Kong’s Hang Seng climbed +0.2%. The ASX 200 slid -0.4%, weighed down by CSL (-8.2%) as trading resumed after it completed an A$6.3b equity raise, the biggest in ASX history, to fund its acquisition of Vifor Pharma. Six of the eleven sectors closed in the red, while tech increased +2.1%, tracking Wednesday's +2.7% gain in the US. Mesoblast recovered +10.9% after saying it would conduct another phase three trial of its drug for back pain, following feedback from the US FDA. Miner IGO gained +1.4% after confirming a A$1.1b bid for Western Areas (+5.6%). The NZX 50 lost -0.7%, with Sanford falling -3.4%. Chorus tumbled -2.2% after the Commerce Commission issued its final determination on how much revenue the company can earn from its broadband fibre network.


WTI Crude, gold and iron all up +2%​​​​​​​


WTI crude&nbsp;increased +2.0% to US$72.93/bbl,&nbsp;gold&nbsp;gained +2.0% to US$1,799.10/oz and&nbsp;iron ore&nbsp;also rose +2.0%&nbsp;to US$109.22/MT.


Morning News Summary: BoE Hikes, ECB Continues QE — Stocks Like It

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Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related accessories. The Company also offers payment, digital content, cloud and advertising services. Apple Inc.'s customers are primarily in consumer, small & mid-sized business, education, enterprise and government markets worldwide.

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Morning News Summary: BoE Hikes, ECB Continues QE — Stocks Like It

Morning News SummaryBoE Hikes, ECB Continues QE — Stocks Like It Equity markets traded mixed on Thursday after three major central banks pulled...

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