The S&P / ASX200 (ASX: XJO) is 1.3% higher today after the US and China reportedly agreed to de-escalate a trade dispute between the two countries. It has been reported that Presidents Trump and Xi have agreed to a 90-day window over which the two nations can attempt to negotiate a definitive resolution to the dispute that could see the scrapping of trade tariffs recently imposed by both superpowers.
However, some shares on the local market are in the red today for a mixture of reasons. So let's take a look at why this may be.
The National Australia Bank Ltd (ASX: NAB) share price is down 0.2% to $24.54 today despite the home loan lender releasing no news to the market. NAB shares are probably underperforming on news that house prices in Sydney (-1.4%) just posted their worst monthly performance since 2004. Prices in Melbourne also fell by 1% in November and bank shareholders could face more pain if house price falls continue through 2019.
The Metcash Limited (ASX: MTS) share price is down 3% to $2.68 after the IGA supplier, liquor and hardware business reported its underlying profit grew 1.2% to $100.3 million for the six-month period ending October 31, 2018. However, management warned that its supermarkets business still faced "highly competitive conditions" in a "challenging" environment. Its hardware and liquor business turned out decent results, but the outlook for the IGA operations may be worrying investors.
The Coles Group Limited (ASX: COL) finds itself on the losers' list again today after its November 21 return to the ASX. Today the shares are down 2.2% to $11.45 after professional brokers and investment analysts handed in mixed assessments of the shares worth. Apparently, UBS valued the group at just $11.90 and initially put a "sell" rating on it when the shares recently traded above $12. Coles shares are also being reasonably heavily shorted by professional investors according to ASIC's latest report.
The Newcrest Mining Limited (ASX: NCM) share price is down 1.2% to $20.50 as gold could fast lose its appeal to investors if the US / China trade war is amicably resolved and the UK negotiates a Brexit deal with the EU. Gold prices tend to rise at times of heightened geopolitical and economic uncertainty and fall when equity investors have more confidence. Newcrest is also a beneficiary of a weaker Australian dollar, however it has bounced today probably as markets price in a delay in the US rate hiking cycle.
