\u201cThere are concerns about what this means for inflation. There is some important data \u2013 Producer Price Index and Consumer Price Index \u2013 coming out of the US this week and it may be hard for the Federal Reserve to sit on its hands.\u201d<\/p>\n
Sullivan said the market there was pricing in a 60\/40 chance of an interest rate rise next week by the Fed and a 90\/10 chance at the end of October.<\/p>\n
\u201cThere\u2019s likely to be higher rates in the US this year, and wholesale interest rates have gone up 8% in the past month.<\/p>\n
\u201cAt the moment, instability is the key driver for the markets \u2013 especially when you read reports of 20 ships being attacked in the Hormuz Strait.\u201d<\/p>\n
Brent Crude oil was trading at US$100.50 at 6pm NZ time after reaching an intraday high of US$101.91, its highest level in 14 weeks, when it reached US$103.54 on May 22.<\/p>\n
The sustained threat to commercial shipping around the Gulf and Hormuz is keeping upward pressure on crude prices, tanker insurance and freight rates, while increasing energy-driven inflation risks, a US commentator said.<\/p>\n
The major US indices fell for the third straight day, with the Dow Jones Industrial Average down 0.77% to 52,380.66 points; the S&P 500 down 0.48% to 7636.36; and the Nasdaq Composite down 0.64% to 26,253.34.<\/p>\n
The London FTSE 100 was down 1.31%, and the Frankfurt Dax Index declined 1.66%. But the markets may level out, with the S&P 500 Futures showing a small gain of 0.16%.<\/p>\n
Bond yields again crept up, with the US 10 Year Treasury Note yield reaching 4.848%, its highest level since November 2023. The yield jumped after the Treasury Department said it would triple its buyback operation of long-dated government debt to US$6 billion.<\/p>\n
Across the Tasman, the S&P\/ASX 200 Index had fallen 1.21% to 8803.3 points at 6pm NZ time \u2013 its lowest level in more than six weeks after sitting at 8772.3 on July 24. Over the past month alone, the index has fallen more than 5%.<\/p>\n
The Hong Kong Hang Seng Index had fallen 1.36%, while the Japanese Nikkei 225 and South Korean Kospi Index improved during the day.<\/p>\n
Local stocks<\/p>\n
At home, Ryman Healthcare fell 5.5c, or 2.72%, to $1.96, its lowest level since October 2010. The stock has fallen from $3 this year. Radius Residential Care fell 3c, or 6.59%, to 42.5c.<\/p>\n
Sullivan said the (pseudo) property market has been quite weak \u2013 \u201ccommercial, industrial, retirement villages, you name it\u201d \u2013 and the sector trades at wide discounts to net tangible assets.<\/p>\n
The energy sector was again weaker. Genesis declined 9c or 3.26% to $2.67; Mercury was down 10c to $6.60; Contact decreased 11c to $8.55; Meridian eased 4c to %5.26; and Vector shed 7c to $4.65.<\/p>\n
Mainfreight was down 96c to $65.60; Freightways eased 16c to $12.75; Fletcher Building declined 10c or 2.60% to $3.74; Port of Tauranga shed 11c to $8.09; and Scales Corp shed 16c or 2.27% to $6.90.<\/p>\n
Fonterra Co-operative was down 10c or 2.11% to $4.65; Delegat Group declined 18c or 3.85% to $4.50; Goodman NZ shed 4.5c or 2.26% to $1.95; Serko shed 5c or 3.33% to $1.45; and Skellerup dropped 12c to $7.37.<\/p>\n
Pole monitoring firm ikeGPS gained 2.5c or 2.27% to $1.12 after confirming its full-year 2027 guidance of 35% subscription revenue growth at its annual meeting. In the 2026 financial year, subscription revenue rose 33% to $19.2m, and ikeGPS had total revenue of $26.6m.<\/p>\n
Bremworth, up 2c (2.86%) to 72c, told the market that its independent directors, Trevor Burt, Julie Bohnenn and Murray Dyer, have resigned<\/a> and will leave at the end of the month.<\/p>\n They said that, having considered recent developments, they believed it was appropriate to step down and allow the board to transition to Bremworth\u2019s next phase.<\/p>\n Rua Gold was up 2.5c to $1.57 after earlier telling the market that 19,600 metres of exploration drilling has produced localised mineralised zones exceeding 20m in width, supporting the potential scale of the Auld Creek resource<\/a> in the Reefton Goldfield.<\/p>\n Rua Gold is submitting its substantive Fast-track mining application next month. Fellow mining stock Santana Minerals gained 2c, or 3.13%, to 66c.<\/p>\n