NZX 50 Extends Losses Ahead of RBNZ, Fed Decisions
The NZX 50 dropped 83 points, or 0.6%, to 13,597 in Wednesday morning deals, extending losses for a fourth straight session as traders remained cautious ahead of the RBNZ’s and the Fed’s monetary policy decisions later today. The market expects the RBNZ to raise the official cash rate by 25 bps to 3% for a third straight meeting, its highest level since September 2025, amid elevated 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. However, moderating oil prices limited the decline, and an upbeat overnight session on Wall Street helped limit losses, supported by a tech rebound ahead of major companies' earnings reports. The broader index touched its lowest level since September 15, dragged down mainly by healthcare, utilities, and energy stocks, with notable losses in Fisher & Paykel (-2.5%), Mercury NZ (-1.5%), Meridian Energy (-1.2%), Contact Energy (-0.8%), and Mainfreight (-0.5%).
The NZX 50 dropped 83 points, or 0.6%, to 13,597 in Wednesday morning deals, extending losses for a fourth straight session as traders remained cautious ahead of the RBNZ’s and the Fed’s monetary policy decisions later today. The market expects the RBNZ to raise the official cash rate by 25 bps to 3% for a third straight meeting, its highest level since September 2025, amid elevated 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.
However, moderating oil prices limited the decline, and an upbeat overnight session on Wall Street helped limit losses, supported by a tech rebound ahead of major companies' earnings reports. The broader index touched its lowest level since September 15, dragged down mainly by healthcare, utilities, and energy stocks, with notable losses in Fisher & Paykel (-2.5%), Mercury NZ (-1.5%), Meridian Energy (-1.2%), Contact Energy (-0.8%), and Mainfreight (-0.5%).