New Zealand and Australia are returning from the long weekend to news from Australia that the ASX is taking another look at its listing rules around mergers and acquisitions after an investor backlash over the waiver granted to James Hardie in side-stepping a shareholder vote to approve it A$14 billion merger with US building products firm Azek.
Meanwhile, markets will be focused on Magnificent 7 earnings results this week, with Amazon, Apple, Microsoft and Meta Platforms all on the schedule to update investors in what’s been a mildly better than expected reporting season so far.
There’ll be politics aplenty this week as investors pore over every word emanating from the White House about its relationship – or lack thereof – with China, while Canada’s people will go to the polls in what’s looking likely to return the ruling Liberal Party under the refreshed leadership of Mark Carney.
And the Reserve Bank of Australia will be in focus when inflation figures are released across the Tasman, while US employment and preliminary economic growth will give analysts plenty to mull over as they ponder the future.
Back to business
New Zealand and Australian markets were closed on Friday for the Anzac day public holiday and will be playing catch up after an upbeat day in the US and Europe – principally in the absence of more tariff talk from US President Donald Trump’s administration.
“Alongside economic policy developments, the US releases data on economic activity, inflation and the labour market which have the potential to reflect some of the headwinds from tariff uncertainty,” Bank of New Zealand senior interest rate strategist Stuart Ritson said in a note.
US data this week include the first estimate of economic growth for the March quarter on Wednesday and non-farm payrolls for April on Friday.
Domestic data this week include the ANZ business confidence survey and Australia’s first-quarter inflation.
Australian futures are pointing to a 1% gain for the S&P/ASX 200 index.
Rolling on
US earnings season will continue to occupy investors this week, with four of the mega-stocks among the 180 firms reporting this week. With more than a third of S&P 500 companies having reported so far, earnings are on track to beat analysts’ expectations.
China’s BYD electric vehicle maker more than doubled its first-quarter profit when reporting on Friday, outpacing rival Tesla which has been beset with falling sales.
Meanwhile, Canada holds its general election on April 28 where the Liberal party is expected to stay in power, getting a new lease of life under the leadership of former central banker Mark Carney.
And in Australia, Anthony Albanese’s ruling Labor Party is polling ahead of the opposition coalition ahead of its May 3 election.
Australian media reported the ASX is reviewing its listing rules relating to takeovers after fund managers raised concerns about the way James Hardie was granted a waiver from holding a vote on the Azek merger, when it will also shift its primary listing to New York.
NZX will hold its annual meeting on Thursday this week and, like its Australian counterpart, has been faced with a tepid flow of new listings in recent times.
Reporting by Paul McBeth. Image from Priyanka Thakran on Unsplash.
This story has been updated to correct the day of NZX's annual meeting.
