Contact Earnings Loom as US Jobs Data Cools Rate Hike Bets

Contact Energy is expected to deliver a solid result as New Zealand's domestic earnings season picks up pace this week. However, softer futures pricing and El Niño conditions are seen as keeping the outlook more muted for the electricity generator-retailers.

The NZX and ASX are starting the week on the front foot with Australian futures pointing to a positive start when trading opens across the Tasman. This follows a strong lead in the US, where softer-than-expected employment data cooled expectations for the Federal Reserve to raise interest rates.

US employment data on Friday was unexpectedly soft, with the world's biggest economy shedding 23,000 jobs in July against forecasts for growth of 83,000. The weak jobs data prompted bond traders to pare back their expectations for rate hikes by the Federal Reserve, with CME Group's FedWatch tool showing a 43% chance of an increase in September.

US corporate earnings have continued to impress, with 88% of the S&P 500 having reported. FactSet data showed 86% of those companies have beaten forecasts.