All eyes on company results
What you need to know on Monday morning, August 11.
- NZX50 down 42.307 points (0.83 per cent) to 5055.202
- NZ dollar at US84.56 cents, A91.17c, 86.36yen, 50.40p, 63.05€c
- Brent crude oil at US$104.67 a barrel (down US77c)
- Spot gold at US$1310.60 an ounce
What's on today
- NZX full-year results announcement due
- Statistics New Zealand electronic card transactions for July
Stocks to watch
- NZX: The stock exchange operator's half-year results announcement today will give investors an indication of whether its success in several key operating metrics is translating to increased profitability. Trading on the NZX in the first half was up more than 20 per cent by volume compared to last year, although the value traded is down, and the listing boom continued with $3.5 billion raised in IPOs. The NZX reported a profit of $62.8 million last year, up 12 per cent.
Top international news
- Investors will gauge the strength of the euro zone's fragile economy this week as escalating conflicts in Ukraine and Iraq darken the mood globally.
In stark contrast to the United States and Britain, which are growing strongly, economic output in the euro bloc is likely to have all but ground to a halt in the three months to June. Its star economy, Germany, is losing momentum and Italy is sliding back into recession.
The growing sanctions fight between Russia and the West over Moscow's backing of Ukrainian rebels and US air strikes to block Islamist militants in Iraq are also upsetting the markets.
On Thursday, the European Union announces economic output data for the 18 countries in the euro zone for the April-June quarter, and Germany will reveal its gross domestic product for the same period.
By these yardsticks, neither Germany nor the wider euro zone are expected to see much, if any, improvement on the first three months of the year.
To compound matters, tit-for-tat sanctions between Moscow and the European Union and fears that Russia could even invade eastern Ukraine are already sapping business confidence and will eat into paltry economic growth later this year.
Something else for your morning
- More than $300,000 should go to a Christchurch subcontractor who ripped up a supermarket car park because he had not been paid, the High Court has ruled.
Pera Te Amo and his crew ripped up the car park outside the Countdown supermarket in Ferrymead in April when lead contractor Watts and Hughes Construction failed to pay for the completed work.