More pain for homeowners?
What you need to know on Thursday morning, June 12.
- NZX50 down 0.254 points (0.005 per cent) to 5179.149
- NZ dollar at US85.62 cents, A91.23c, 87.29yen, 50.96p, €63.25c
- Brent crude oil at US$109.95 a barrel (up US43c)
- Spot gold at US$1260.20 an ounce
What's on today
- The Reserve Bank announces the official cash rate this morning with Governor Graeme Wheeler expected to hike the rate by 25 basis points to 3.25 per cent. He will also deliver the bank's quarterly monetary policy statement, which will give clues on when to expect further rate hikes.
- Postie Plus, which was recently placed into voluntary administration, will hold a creditor meeting at 2pm at the Ellerslie Event Centre in Auckland.
Stocks to watch
- Yield stocks: New Zealand's share market is renowned for its high dividend yields, but companies that make dividends a big selling point for investors could see their value affected by the widely expected 25 basis point hike in the OCR today.
- Utilities such as the power companies and Auckland Airport, and even bank stocks, could see their valuations shrink as rates on term deposits increase with the OCR.
Top international news
- US stocks slipped on Wednesday, with the Dow and S&P 500 pulling back from record levels, though strength in a number of large-cap tech names kept theNasdaq near break-even territory.
Wall Street has advanced but struggled for direction lately, with daily modest moves in either direction. The S&P 500's drop of 0.3 per cent represented its biggest daily decline since May 20.
The stock market's upward trend is still deemed intact, but a lack of major trading catalysts could curb gains. The Dow ended at a fourth straight record high on Tuesday, while the S&P 500 closed lower after four days of record finishes.
The Dow Jones industrial average fell 88.55 points or 0.52 per cent, to 16,857.37. The S&P 500 slipped 5.62 points or 0.29 per cent, to 1,945.17. The Nasdaq Composite .IXIC dropped 2.90 points or 0.07 per cent, to 4,335.10.
Something else for your morning
- What do you get when you cross wearable art with agriculture? A smorgasbord of wire, fibreglass, wool and sausage casings were on show yesterday at the Ag Art Wear Show in the Fieldays Theatre. Ag Art Wear is a competition and sub-event held every year at Fieldays. The challenge is for designers to create wearable art garments from materials used in farming.