Wild weather is wracking the nation with Air New Zealand cancelling flights, power cuts in Wellington and a state of emergency declared in Canterbury’s Selwyn.
Meanwhile, reports have emerged from across the Tasman that Spark New Zealand is testing the waters in seeking a partner for its data centre business.
And it’s been a turbulent time in the US, where data showed hurried stockpiling ahead of President Donald Trump’s Liberation Day tariff regime was a drag on the world’s biggest economy in the first three months of the year in its first contraction since 2022.
Wall Street didn’t like the sombre economic data with the major indices set to finish April on the red side of the ledger, with server maker Super Micro Computer slumping as its earnings fell well short of expectations. It will be up to the Magnificent 7 after the bell when Meta Platforms and Microsoft report their latest earnings.
May Day
Wall Street is giving a soft lead to the antipodes with the S&P 500 down 0.8% at 7am in Auckland after preliminary estimates showed the US economy shrank 0.3% in the first three months of the year, with surging imports sapping activity as firms got in ahead of Trump’s tariff regime in early April.
Meanwhile, a private sector employment report came in below expectations ahead of non-farm payrolls for March to be release of Friday in the US, while personal spending and income data were stronger were anticipated.
The kiwi dollar traded at 59.39 US cents from 59.33 cents yesterday.
“US equities fell sharply after weak GDP data and lacklustre corporate earnings,” Bank of New Zealand senior interest rate strategist Stuart Ritson said in a note. “Global bond yields are generally lower, and the dollar is mixed against G10 currencies, albeit with relatively small absolute moves.”
Artificial intelligence server maker Super Micro slumped 14% after saying its earnings missed guidance as customers dialled back orders. That weighed on rival Dell and chipmaker Nvidia.
Meanwhile, Meta and Microsoft will report after the close of trading, giving investors another steer on the outlook for the massive AI investment.
All aboard
Closer to home, Spark is said to be seeking a partner for its data centre business, with the Australian Financial Review’s Street Talk column reporting the telecommunications firm has hired Jarden to find a buyer for a 50% stake of the platform.
Australian futures are pointing to a 0.6% decline for the S&P/ASX 200 index today. Australia’s benchmark index rose 3.6% in April after a strong finish to the month, outperforming the 3% decline for New Zealand’s S&P/NZX 50 index.
New Zealand is being buffeted by wild weather, particularly in the Wellington and Canterbury regions today, with national carrier Air NZ cancelling flights in and out of the capital until at least midday and power cuts in parts of Wellington. A state of emergency was declared in the Selwyn district of Canterbury.
Stock market operator NZX is holding its annual meeting in Christchurch today.
There’s no major local data scheduled today.
Reporting by Paul McBeth. Image from Scott Rodgerson on Unsplash.