New Zealand Stocks Start the Week Lower
The NZX 50 dropped 95 points, or 0.7%, to 13,702 in Monday morning trade, erasing gains from the prior three sessions and tracking a decline on Wall Street on Friday due to a selloff in major tech stocks. Caution also built ahead of the release of New Zealand's Q3 unemployment data due later this week, after the jobless rate posted its highest reading since Q3 2015 in Q2. Traders also worried over signals of a possible interest rate hike at the RBNZ's December meeting amid the central bank's efforts to combat rising inflation. A contraction in China's manufacturing sector also pressured sentiment, while traders continued to monitor developments in the Middle East and their impact on oil prices. The broader index moved away from its highest level since October 15, touched on Friday, mainly weighed down by energy, financials, and real estate stocks. Among early losers were Fletcher Building (-4.6%), Infratil (-1.8%), Meridian Energy (-1.3%), and Westpac Banking Corp. (-1.2%).
The NZX 50 dropped 95 points, or 0.7%, to 13,702 in Monday morning trade, erasing gains from the prior three sessions and tracking a decline on Wall Street on Friday due to a selloff in major tech stocks. Caution also built ahead of the release of New Zealand's Q3 unemployment data due later this week, after the jobless rate posted its highest reading since Q3 2015 in Q2. Traders also worried over signals of a possible interest rate hike at the RBNZ's December meeting amid the central bank's efforts to combat rising inflation.
A contraction in China's manufacturing sector also pressured sentiment, while traders continued to monitor developments in the Middle East and their impact on oil prices. The broader index moved away from its highest level since October 15, touched on Friday, mainly weighed down by energy, financials, and real estate stocks. Among early losers were Fletcher Building (-4.6%), Infratil (-1.8%), Meridian Energy (-1.3%), and Westpac Banking Corp. (-1.2%).