The brief balloon of optimism from the weekend's European Leaders' Summit has the first holes poked in it overnight after a swathe of weaker factory data showed the eurozone crisis is weighing on the global economy.
Figures out of the US and China overnight showed that manufacturing activity in the world's two biggest economies dropped into contraction in June, a development that is likely to feed through into regional equity markets today despite Wall Street ending relatively unscathed.
The Reserve Bank of Australia's rates announcement is likely to be the main feature of the local trading day, with New Zealand data flows light. Economists are betting the bank will hold rates at 3.5 per cent according to a Reuters poll, but are expecting the rhetoric to be on the dovish side.
Stocks to watch:
NZX's former chief executive Mark Weldon sold 9.5 million shares in the securities market operator for $12.5 million, according to a substantial shareholder's notice filed after the close of trade yesterday. The sale represented over 3 per cent of the company's stock. NZX shares closed at $1.36 yesterday.
Mercer has signed an unconditional agreement to by a 75 per cent stake in the Titan Slicer business and a 25 per cent stake in Titan Design for $1m. Titan is a Nelson-based business that designs and makes industrial meat slicers. MGL shares closed at 12c apiece yesterday, and last traded at June 6.
Australia and New Zealand
NZX 50: +1.2 per cent to 3440.16
S&P/ASX 200: +0.93 per cent to 4133.0
Dow: -0.07 per cent to 12,871.40
S&P 500: +0.25 per cent to 1365.51
Nasdaq: +0.55 per cent to 2951.23
FTSE 100: +1.25 per cent to 5640.64
Dax: +1.24 per cent to 6496.08
Stoxx 600: +1.45 per cent to 254.82
Nikkei: -0.04 per cent to 9003.48
Hang Seng: +2.19 per cent to 19,441.50
The New Zealand dollar recently traded at US80.28 cents, up from US80.05c at 5pm yesterday.
Gold: US$1595.74 an ounce, from US$1596.99 yesterday
ICE Brent Crude: US$97.39 a barrel, from US$94.31 yesterday
Thompson Reuters Jefferies CRB: +0.01 per cent to 284.21
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