Summary: It was déjà vu all over again on markets overnight, with an early slump in stocks on fears about higher interest rates and a war in Ukraine followed by a rash of dip-buying, particularly from retail investors.

‘Hold on tight’ US stocks were again on a rollercoaster ride this morning, falling another 2-4% in morning trading, before rebounding mid-afternoon to be down 1% by 8.30 am NZT. It did a similar thing yesterday, rallying sharply into the close after the Wakeup call was published. (CNBC)

‘Brace for it’ The IMF lowered its growth forecasts for 2022 and 2023, while also increasing its inflation forecasts. It warned of a very uneven covid recovery and cautioned against over-aggressive tightening of monetary and fiscal policies. (IMF)

‘Yeah … nah’ Auckland’s DHBs have called in a leaked document for the government to scrap MIQ overseas arrivals once omicron has taken hold to free up resources “which will be badly needed elsewhere”, (NZ Herald-$$$) However, epidemiologists Nick Wilson and Michael Baker called on the government to keep the border closed until the omicron wave has passed to avoid extra cases increasing total numbers. (Stuff)

Aussie rate hike soon? Australian CPI inflation was 3.5% in the December quarter from a year ago, which was above expectations and has pulled forward forecasts for a Reserve Bank of Australia rate hike to mid 2022 from late 2022 or early 2023. (Reuters)

‘Allo allo BoJo’ UK Police are now investigating another report that Boris Johnson hosted an indoor birthday party last year in breach of covid rules. A highly critical report is due in the next day or two and his survival as PM is even more in doubt (ITV)

Deal done Global Compare Group, known locally as NZ Compare, announced the acquisition of the PriceMe this morning for an undisclosed amount. NZ Compare operates Broadband Compare, Power Compare and Money Compare and PriceMe’s 10 staff in New Zealand will join the Compare Group, with more hires planned.

Fresh on BusinessDesk this morning

Ian Llewellyn reports carbon prices are heading well above $70 a tonne for a NZ Unit, the highest on record and heading higher.

Andy Fyers previews tomorrow’s inflation figures with a deeper dive into the numbers. 

Michael Andrew also dives into the numbers for mergers and acquisitions in 2021 to find a 400% increase.

David Chaplin writes his weekly column about the panic attacks hitting stock markets this week.

Brent Melville reports on a $370b increase in house values to $1.72t.

Latest NZX data (market currently closed)

Fri, 20 May 2022 05:00 pm
S&P/NZX 50 INDEX
11,267.39
+60.46 (0.54%)
$ VALUE TRADED
122,330,719.98
VOLUME TRADED
34,545,772.00
GAINERS
86
DECLINERS
46
TOP GAINERS (valued at above 10c)
EROAD $0.200 8.03 %
Ryman Healthcare $0.710 7.77 %
My Food Bag $0.060 7.59 %
Sky Network Television $0.140 5.88 %
Cannasouth $0.020 5.80 %
TOP DECLINERS (valued at above 10c)
Greenfern Industries Ltd $-0.009 -8.26 %
Asset Plus $-0.015 -5.36 %
Chatham Rock Phosphate $-0.020 -5.33 %
T & G Global $-0.120 -4.21 %
Fonterra Shares $-0.090 -3.77 %