Need to know: Monday
What you need to know on Monday morning, August 4.
- NZX50 down 58.058 points (1.12 per cent) to 5109.931
- NZ dollar at US85.16 cents, A91.43c, 87.38yen, 50.62p, 63.40€c
- Brent crude oil at US$104.69 a barrel (down US$1.33)
- Spot gold at US$1293.10 an ounce
What's on today
- The ANZ Commodity Price Index for August will show how the continued milk price fall has affected the overall index
Stocks to watch
- The whole market: The entire NZX 50 will be under scrutiny today after a 1.12 per cent drop on Friday, as it followed international markets down. The S&P 500 endured its worst week in two years last week and investors will be watching to see if it is a temporary blip or the start of a wider market correction after a run of gains on record low volatility. The New Zealand market has been flat for the past four months with little day-to-day movement.
Top international news
- Growth in China's services sector slipped to a six-month low in July as new orders rose at their weakest rate in at least a year, data showed, taking some of the shine off an industry that has been a bright spot in the Chinese economy this year.
The official Purchasing Managers' Index (PMI) for the non-manufacturing sector slowed to 54.2 in July from June's 55, the National Bureau of Statistics said on Sunday. That is the weakest reading since January.
A reading above 50 in PMI surveys indicates an expansion in activity while a reading below the threshold points to a contraction.
The slight retreat in the services sector came at a time when China's factories have started to recover, having earlier this year been one of the drags on growth in the world's second-largest economy due to faltering demand at home and abroad.
In contrast, China's services companies have held up through each slowdown since PMI records began in January 2007, with the index staying above 50 in every month.
Something else for your morning
- Landlord representative Andrew King dubbed a financial sector plan to "inflation-proof" the way long-term savings are taxed a "ludicrous" move that would hit rental-property owners. The Financial Services Council, which represents fund managers, says New Zealand overtaxes retired Kiwis living off interest income, as well as people saving for retirement.