NZX 50 Rebounds after RBNZ Holds Rates
The NZX 50 rose 40 points, or 0.3%, to 13,720 on Wednesday, erasing its morning losses and those from the previous three sessions after the RBNZ unexpectedly held its official cash rate, defying market expectations for a 25 bps hike. Annual inflation slowed to 3.7% in Q3; however, it remained above the RBNZ’s 1—3% target range. Moderating oil prices lifted sentiment as inflation concerns and fears of interest rate hikes eased. An upbeat session on Wall Street overnight also boosted sentiment, supported by a rebound in tech stocks ahead of major companies’ earnings reports. However, traders remained cautious ahead of the Fed’s monetary policy decision later today, with the market expecting the central bank to hold interest rates. Financials, technology, consumer discretionary, and materials stocks mainly supported the index, with notable gains in Hallenstein Glasson (3.7%), Infratil (2.8%), Westpac Banking Corp (1.8%), ANZ Group (1.5%), and Freightways Group (1.2%).
The NZX 50 rose 40 points, or 0.3%, to 13,720 on Wednesday, erasing its morning losses and those from the previous three sessions after the RBNZ unexpectedly held its official cash rate, defying market expectations for a 25 bps hike. Annual inflation slowed to 3.7% in Q3; however, it remained above the RBNZ’s 1—3% target range. Moderating oil prices lifted sentiment as inflation concerns and fears of interest rate hikes eased. An upbeat session on Wall Street overnight also boosted sentiment, supported by a rebound in tech stocks ahead of major companies’ earnings reports.
However, traders remained cautious ahead of the Fed’s monetary policy decision later today, with the market expecting the central bank to hold interest rates. Financials, technology, consumer discretionary, and materials stocks mainly supported the index, with notable gains in Hallenstein Glasson (3.7%), Infratil (2.8%), Westpac Banking Corp (1.8%), ANZ Group (1.5%), and Freightways Group (1.2%).