At alert level 3, some non-essential businesses will be able to resume working under strict conditions.
At alert level 3, some non-essential businesses will be able to resume working under strict conditions.
Investors may stick to the sidelines today as they await the government's decision on whether to ease the lockdown restrictions.
A decision on whether to end the initial 28-day alert level 4 lockdown - which has run since March 26 - will be assessed at Monday morning's Cabinet meeting. Theannouncement, due to be made at 4pm, could see the lockdown eased from April 22.
If the government decides to go to alert level 3, some non-essential businesses will be able to resume working under strict conditions, such as social distancing.
This could give companies like Restaurant Brands a lift as well as retailers like Hallenstein Glasson Holdings, Kathmandu, and Briscoe Group.
Fletcher Building may also fare well as the construction industry will also be able to resume work.
Stats NZ is due to publish first-quarter inflation data today. ANZ Bank says that the consumers price index likely lifted 0.5 percent during the quarter, bringing annual inflation to 2.2 percent.
"In today's context, what inflation did in Q1 is hardly relevant for monetary policy settings. The RBNZ has already thrown the kitchen sink at it, but even more will be needed," said ANZ Bank chief economist Sharon Zollner.
Meanwhile, investors may also be cheered as the covid-19 outbreak appears to be easing in some of the hardest hit nations, including parts of the US.
New York continued to see hospitalisations decline on Sunday and governor Andrew Cuomo urged people to continue social distancing.
"We showed you can control the beast. But it's only half time. We still have to make sure we keep the beast down," he was quoted by Reuters as saying.
In other parts of the US, governors have said they could open parts of the economy by May 1 or even sooner after the Trump government released "guidelines for opening up America again."
The kiwi dollar, meanwhile, continues to hover around 60 US cents and was trading at 60.30 US cents at 8am in Wellington versus 60.18 cents at 5pm Friday.
At alert level 3, some non-essential businesses will be able to resume working under strict conditions.
ANZ's Zollner said markets were higher on the Trump administration's plan for reopening. On Friday, the Dow Jones Industrial Average added 3 percent, while the S&P 500 ended up 2.7 percent and the Nasdaq added 1.4 percent.
The Dow got a particular lift after Boeing said it would resume manufacturing jetliners. Boeing shares spiked nearly 15 percent.
While covid-19 will remain front and centre for investors, the focus will also be on corporate earnings in the US.
A fifth of S&P 500 companies are expected to report results in the coming week but the main focus will be on the commentary as investors look to gauge the impact of the virus.
