NZX 50 Starts Trading Week on a Weak Note
The NZX 50 dropped 22 points, or 0.2%, to 13,712 in Tuesday morning trade, extending losses from the previous two sessions. Trading resumed after the market closed on Monday for Labour Day. Traders were cautious ahead of the RBNZ’s monetary policy decision on Wednesday. The market expects the central bank to hike interest rates by 25 bps to 3%, following rate increases in July and September, amid high inflation driven by higher oil prices. Although annual inflation slowed to 3.7% in Q3, it remained above the RBNZ’s 1—3% target range. Caution persisted amid expectations that inflation would rise again following a temporary dip in fuel prices. Traders also braced for the Fed’s interest rate decision later this week. The utilities, healthcare, and communication services sectors weighed on the index, with early decliners including Chorus (-1.7%), Summerset Group (-1.1%), Briscoe Group (-1.1%), Mainfreight (-0.9%), Fisher & Paykel (-0.9%), and Freightways Group (-0.7%).
The NZX 50 dropped 22 points, or 0.2%, to 13,712 in Tuesday morning trade, extending losses from the previous two sessions. Trading resumed after the market closed on Monday for Labour Day. Traders were cautious ahead of the RBNZ’s monetary policy decision on Wednesday. The market expects the central bank to hike interest rates by 25 bps to 3%, following rate increases in July and September, amid high inflation driven by higher oil prices.
Although annual inflation slowed to 3.7% in Q3, it remained above the RBNZ’s 1—3% target range. Caution persisted amid expectations that inflation would rise again following a temporary dip in fuel prices. Traders also braced for the Fed’s interest rate decision later this week. The utilities, healthcare, and communication services sectors weighed on the index, with early decliners including Chorus (-1.7%), Summerset Group (-1.1%), Briscoe Group (-1.1%), Mainfreight (-0.9%), Fisher & Paykel (-0.9%), and Freightways Group (-0.7%).