Devon Funds Morning Note - 10 September 2025

Wednesday 10th September 2025

Bulls, Bears & Brilliant Moves

Global

Wall Street notched another round of record highs overnight as risk appetite remained robust on Tuesday, despite investor caution ahead of inflation data. The S&P 500 advanced 0.3% to close at 6,512.6 and the Nasdaq Composite climbed 0.4% to settle at 21,879.5. The Dow Jones Industrial Average outperformed, gaining 0.4% to finish at 45,711.3. Sentiment remained upbeat as the tech-heavy Nasdaq notched a new record, led by persistent momentum in semiconductor and cloud computing shares. Notably, Microsoft rose after news of a strategic AI partnership with Nebius, which sent Nebius shares up 49% in pre-market trade. Alphabet and Nvidia also closed higher, while energy and financials were steady after recent gains.

In company news, Robinhood again drew attention as its stock continued to rise after the S&P 500 index inclusion. Oracle surged 20% after market after reporting a jump in bookings for the quarter with cloud infrastructure increasing 55% to US$3.3bn. Oracle is guiding their AI cloud infrastructure revenue to US$18bn in FY26 (+77% YoY) with accelerating growth in the remaining three quarters.

Apple’s shares were weaker following an underwhelming debut for iPhone 17. It appears the new Air design and device capabilities were unremarkable relative to what has already been reported. Apple has kept the starting price of the base model the same at US$799, while the Air version will cost US$999.

Meanwhile, oil prices steadied after OPEC+ announced a modest production increase, with WTI crude holding near USD 62.7/bbl. US Treasury yields ended marginally higher as investors awaited key US CPI data due later in the week.

European markets tracked US gains, with the Euro Stoxx 50 climbing 0.11% to 5,368.8, and the FTSE 100 gaining 0.23% to 9,242.5 while Germany’s DAX was down 0.37% to 23,718.5. Optimism was helped by firmer industrial production data in Germany and positive sector moves among industrials and technology.

In Asia, markets were mixed before the local close. The Nikkei 225 fell 0.42%, while Hong Kong’s Hang Seng gained 1.19% as property and technology stocks faced renewed selling. Mainland Chinese indices were flat as traders remained wary of sluggish trade data and persistent policy uncertainty.

New Zealand

The S&P/NZX 50 reversed Monday’s gains to close down 0.21% at 13,254 on Tuesday, ending a three-day rally. The retreat was broad-based, as investors locked in profits following the index’s four-year high the session prior. Declines were led by Spark NZ (-4.2%) as the stock went ex-dividend, KMD Brands (-5.56%), and consumer durables, while utilities and electronic technology also came under pressure. Ryman Healthcare shed 1.6% and Vital dropped 1.2%. Weak August trade data from China, New Zealand’s main trading partner, added to a cautious tone as both exports and imports undershot forecasts. Domestic data also weighed, as second-quarter manufacturing sales declined 0.6% y/y, marking the first such drop in three quarters.

More defensive names such as Meridian Energy (-2.04%), Infratil (-1.69%), and T&G Global (-1.48%) contributed to declines, while the rest of the market saw profit-taking and moderate volume after the recent run higher. The New Zealand dollar was steady in quiet trade.

In company news, Precinct planning of a $100 million-plus scheme in Mt Eden has been granted to develop 135 apartments, offices and shops. The Auckland council documents show the granted resource consent development will take place on Dominion/Valley Rd corner of Mt Eden for three new blocks, consisting of 135 apartments, five office units, and 106 car parks. Demolition is due to take place of existing supporting buildings.

Briscoe’s pre-release revenue fell -0.2% year on year to $371m and Net Profit After Tax was $29.3m, just beating guidance of $29m. There remains caution around the retail environment in the absence of a clear uplift in consumer confidence from economic headwinds. Today, Summerset, Goodman Property Trust, and PGG Wrightson are ex-dividend paying 11.3, 1.7, and 4cps, respectively.

Australia

Australian equities eased for a second consecutive session, with the S&P/ASX 200 closing down 0.52% at 8,803.5 on Tuesday. The index spent much of the session in negative territory as broad-based weakness weighed, despite a late rally in select tech and healthcare shares. Major miners BHP and Rio Tinto fell after iron ore futures slipped below USD 100/t, while the energy sector lagged as Woodside Energy Group dropped 1.20% and Santos fell 0.91% on weaker oil prices. QBE Insurance declined 0.24% after its update disappointed versus expectations, while REA Group also posted a loss of 1.03%.

Banks were weak; ANZ lost 0.21%, NAB fell 0.14%, and Westpac closed down 0.82%. The overall fall was influenced by disappointing July dwelling approval figures and ongoing concerns about slowing economic momentum locally. ANZ dropped on Tuesday after announcing a significant restructuring plan to cut around 3,500 jobs—roughly 8% of its workforce—by September 2026 as part of a major overhaul initiated by new CEO Nuno Matos. The bank also plans to scale back its use of external consultants and contractors. This restructuring will result in a one-off charge of approximately A$560 million in the second half, and the bank emphasised that the cuts are intended to simplify operations and focus resources on customer-facing roles. The announcement triggered selling pressure, with investors reacting to both the scale of job cuts and the anticipated restructuring costs, leading to ANZ’s share price fall for the session.

On the upside, healthcare stocks Telix and ResMed provided relative support, stemming heavier losses for the index.

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