The rumour mill has kicked off across the Tasman about Spark New Zealand’s future as the telco starts making inroads with its partnerships to clamp down on costs.
Meanwhile, markets were mixed overnight as investors pondered the state of the US federal government’s books, while a defence and trade pact between the UK and Europe will cut red tape on food products and extend European Union access to British waters.
And a call between US President Donald Trump and Russia’s Vladimir Putin has received a mixed reception as to whether it will leave to peace talks between Russia and Ukraine.
In the antipodes, the Reserve Bank of Australia is expected to cut its target cash rate today with futures pointing to an upbeat day for the ASX.
Take your pick
Stocks on Wall Street were mixed as investors digested the credit rating downgrade by Moody’s Ratings last week, where the US was lowered to Aa1 from Aaa over its projected federal government deficits, with President Donald Trump’s tax bill seen as adding to the pressure.
JP Morgan Chase chief executive Jamie Dimon warned there could be further declines in store for stock markets, with the full impact of tariffs yet to work their way through the economy.
The Nasdaq Composite was down 0.1% in afternoon trading, while the Dow Jones Industrial Average increased 0.3%. The kiwi dollar rose to 59.21 US cents at 7am in Auckland from 58.88 cents yesterday.
“Risk sentiment began the week with a soft tone, after the downgrade to the US government’s credit rating by Moody’s Ratings, near the global close on Friday,” Bank of New Zealand senior interest rate strategist Stuart Ritson said in a note. “Risk sentiment has rebounded overnight with the S&P fully unwinding its earlier fall and treasuries also recovering.”
Rekindling old flames
Across the Atlantic, the UK’s FTSE 100 index increased 0.2% and Germany’s DAX 30 gained 0.7% with the UK and European Union reaching a wide-ranging deal to reset the trade and security relationship between Britain and the continental bloc.
The NZ dollar traded at 44.33 British pence from 44.25 pence yesterday and 52.70 euro cents from 52.62 cents.
Meanwhile, a call between Trump and Russian President Vladimir Putin got a mixed response on whether it will lead to peace talks between Russia and Ukraine.
Travel software developer Serko is among domestic companies reporting, with a stronger lead coming from Europe after low-cost Irish carrier Ryanair reported strong demand across Europe.
Australian whispers
Insurer Tower is also reporting on the NZX today.
Meanwhile, across the Tasman Australian futures are pointing to a 0.6% increase for the S&P/ASX 200 index today, with economists predicting the Reserve Bank of Australia will cut the target cash rate a quarter-point to 3.85%.
And Spark New Zealand will be in focus after The Australian newspaper reported the local telco has attracted interest from private equity firms. Spark has been making inroads in cutting costs through partnerships with global outsourcing relationships and has been looking for an equity partner in its capital-hungry data centre business.
There’s no major local data scheduled for today.
Reporting by Paul McBeth. Image from Denny Müller on Unsplash.
