US clean energy firms rally on tax clarity; Infratil AGM looms
Mercury NZ is the latest company to report.
US solar firms including Sunrun and First Solar bounced back from their recent sell-off after an update on the federal government’s renewable tax credits wasn’t as bad as feared, reaffirming Infratil’s optimism about its Longroad Energy investment.
Infratil is holding its annual meeting today, updating investors on how its portfolio of infrastructure assets are tracking, while Mercury NZ is the latest company to report in what’s expected to offer an upbeat outlook.
Stocks on Wall Street were flat as investors turn their eye to the upcoming central bankers' forum at Jackson Hole, Wyoming for any clues on the US Federal Reserve’s interest rate track.
And oil futures nudged higher as US President Donald Trump meets his Ukrainian counterpart Volodymyr Zelensky in the latest efforts to find a conclusion to the Ukraine-Russia war.
Holding pattern
Stocks on Wall Street were fairly muted with the S&P 500 almost unchanged, while the tech-heavy Nasdaq Composite nudged up 0.1% and the Dow Jones Industrial Average slipped 0.1%, led lower by Boeing Co and paint manufacturer Sherwin Williams.
Online real estate platform Opendoor Technologies, one of the latest companies to attract meme stock status, surged 20% in late trading after announcing the departure of its chief executive. The stock was one of the top-10 traded securities by Sharesies investors at 7am in Auckland.
Investors are awaiting results from large retailers including Walmart, Home Depot and Target this week for a steer on how inflation and the White House’s tariff regime have been affecting US consumers.
Across the Atlantic, stock markets were mixed, with the UK’s FTSE 100 index up 0.2%, while Germany’s DAX 30 slipped 0.2% and France’s CAC 40 declined 0.5%.
The annual central bankers’ forum at Jackson Hole in Wyoming is high on the agenda this week, with investors looking for clues on whether the US Federal Reserve will cut the federal funds rate next month.
“The market is likely to be in a holding pattern until we hear from Fed chair (Jerome) Powell at the end of the week at the Jackson Hole symposium, where there will be interest in whether he opens the door to a September rate cut and how he frames the risk around the meeting,” Bank of New Zealand senior markets strategist Jason Wong said in a note.
Easier times
New Zealand’s Reserve Bank is expected to cut the official cash rate a quarter-point to 3% when it reviews monetary policy on Wednesday.
Brent crude oil futures were up 0.1% at US$66.64 a barrel at 7am in Auckland as US President Donald Trump started his meeting with Ukraine’s Volodymyr Zelensky in seeking an end to the Russian invasion of its neighbour.
Solar companies on Wall Street regained some of their recent losses after federal government guidance indicated some projects will still be eligible for subsidies, with Sunrun up 8.8% in late trading and First Solar advancing 10%.
NZX-listed Infratil gained on Monday after saying the guidance meant 5 gigawatts of projects from its Longroad investment will still be covered by the tax credits. The infrastructure investor is holding its annual meeting in Auckland today, where it will update its owners on how its various investments are tracking.
Earnings season continues Downunder with Mercury NZ set to report its annual result today, with analysts predicting an upbeat outlook from the electricity generator-retailer given its full hydro lake at the start of the new financial year.
Australian futures are pointing to a 0.4% decline when the S&P/ASX 200 index starts trading today, while the New Zealand dollar traded at 59.20 US cents at 7am in Auckland from 59.39 cents yesterday.
Local data today include Statistics New Zealand’s June quarter producer prices indices.
