New Zealand’s corporate earnings season will start slowly this week with rural services firm PGG Wrightson set to kick things off on Tuesday having set expectations for an upbeat result, while Vista Group International and Vital Healthcare Property Trust are also among the early reporters.
Stocks on Wall Street ended last week on a high with the US corporate earnings season almost completed and the majority of firms beating analysts’ expectations, despite the waves caused by President Donald Trump’s tariff regime.
Meanwhile, oil futures have been on the decline ahead of Trump’s scheduled meeting with his Russian counterpart Vladimir Putin, where they hope to reach a deal to end Russia’s invasion of Ukraine.
And Australian media is reporting the separate asset sales by Fonterra Cooperative Group and Spark New Zealand are at the pointy end of negotiations, and both close to coming to an end.
Tallying the numbers
New Zealand’s reporting season hits full swing later this month, but some early companies are due to set the scene this week when they file their financials, with PGG Wrightson kicking things off on Tuesday when it posts its annual result.
The rural services firm last month said it experienced a stronger end to the financial year, and would report operating earnings of about $54 million for the June year.
Among other NZX-listed companies reporting this week are Vital Healthcare Property Trust, Ventia Services, and Vista Group International.
Expectations for the earnings season are low given the protracted downturn in the domestic economy, matching a similar subdued outlook for US firms. Some 90% of the S&P 500 has reported their June quarter results, with 81% beating earnings per share estimates, according to FactSet data.
Stocks on Wall Street ended last week stronger, with the S&P 500 up 0.8% on Friday, as investors prepare for a faster move to lower rates by the US Federal Reserve, which will be tested by inflation data later this week.
US President Donald Trump appointed his council chair of economic advisers Stephen Miran to fill the vacant seat on the Fed’s board of governors.
Peace time
Meanwhile, Brent crude oil futures fell 0.4% to US$66.32 a barrel, with energy prices softening on optimism Trump and Russian President Vladimir Putin will reach a deal to end the war in Ukraine when they meet this week in Alaska. US vice president JD Vance said a peace deal will probably leave both Russia and Ukraine unhappy, with the US seeking a settlement that both countries can accept.
Australian futures are pointing to a 0.1% increase for the S&P/ASX 200 index when it starts trading today, while the kiwi dollar traded at 59.64 US cents at 7am in Auckland from 59.59 cents last week.
The Reserve Bank of Australia will review monetary policy on Tuesday and is expected to cut the target cash rate a quarter-point to 3.6%.
Local data today include June quarter concrete figures.
Meanwhile, the Australian Financial Review’s Street Talk column reported Fonterra’s sale of its Mainland Group consumer business is nearing a conclusion, with France’s Lactalis granted exclusivity to negotiate for a buyout, and that Spark is expected to deal exclusively with Pacific Equity Partners in selling a majority stake of its data centre business.
Reporting by Paul McBeth. Image from Austin Distel on Unsplash.
