Craigs Investment Partners’ stake in Australian stockbroker Wilsons Advisory is said to be on the block, with reports across the Tasman that the cashed-up investment house is looking for a way out of its decade-long foray on the West Island.
Meanwhile, stocks on Wall Street declined after the much-vaunted US-China talks took us back to where we were a month ago, while inflation data came in below expectations prompting US President Donald Trump to again urge the Federal Reserve to cut rates.
The broader weakness saw Tesla reverse earlier gains as Elon Musk walked back his spat with Trump last week, saying some of his posts went too far.
And Australia’s nuclear submarine deal with the US is looking shaky with the Pentagon reviewing whether the AUKUS deal is aligned with Trump’s America First policy prescription.
Is that all?
Wall Street was broadly weaker as the details of the US-China trade talks took things back to last month’s agreement, with China facing a 55% and the US a 10% import levy, and restrictions on rare earth minerals lifted while Chinese students will be allowed into US universities.
Meanwhile, The Wall Street journal reported China is putting a six-month limit on mineral licences for US automakers and manufacturers, keeping an ace up its sleeve if tensions reignite.
“The two-day trade negotiations between the US and China ended in London with a framework for implementing the agreement from last month’s Geneva meeting – a lot of effort to agree to what was agreed last month,” Bank of New Zealand senior market strategist Jason Wong said in a note. “On that basis the outcome is disappointing, and no real progress has been made.”
The S&P 500 was down 0.4% in late trading, with investors also weighing up softer inflation data than expected as consumer prices – excluding food and energy – rose 0.1% in May, a slower pace than the 0.3% expected. US President Donald Trump reiterated his calls for the Federal Reserve to cut the fed funds rate.
The softness reversed earlier gains for electric car maker Tesla after chief executive Elon Musk walked back some of his comments last week where he criticised Trump and the president’s tax and spending bill.
Floating your boat
Meanwhile, the initial public offering market got a boost with Starlab space station developer Voyager Technologies shares more than doubling on debut with an opening price of US$69.75 a share, compared to the US$31 offer price.
Airlines were broadly weaker as oil prices rose amid rising tensions in the Middle East, where the US is preparing to evacuate its Iraqi embassy due to elevated security concerns. American Airlines fell 6.9% in late trading, United Airlines declined 6.5% and Delta Air Lines slid 5.7%.
Stock markets across the Atlantic were mixed as the UK’s FTSE 100 advanced 0.1% after finance minister Rachel Reeves outlined plans to boost spending on health, defence and infrastructure projects to drive growth, while Germany’s DAX 30 and France’s CAC 40 were both down 0.2% in the wake of the US-China deal.
Meanwhile, Australian futures are pointing to a 0.1% increase for the S&P/ASX 200 index despite the soft lead, while the kiwi dollar traded at 60.35 US cents at 7am in Auckland, unchanged from yesterday.
Australia is facing an upending of its US$300 billion plan to acquire nuclear submarines after Trump’s administration launched a review of the AUKUS defence pact and whether it aligns with the White House’s America First policy prescription.
Meanwhile, Craigs Investment Partners’ 50% stake in Australian stockbroker Wilson Advisory may be up for sale, according to a report in The Australian Financial Review’s Street Talk column, with Canada’s Cannaccord Genuity said to be in talks to buy it.
Local data today include May spending on credit and debit cards.
Reporting by Paul McBeth. Image from Vitaly Gariev on Unsplash.
