NZX 50 Subdued After Trump Remarks on Trade

The NZX 50 ended slightly lower at 13,525 on Wednesday, reversing morning gains and retreating from a near two-week high after two sessions of strength. Losses in logistics, utilities, and healthcare weighed on sentiment, which weakened after U.S. President Donald Trump warned that countries must not retreat from recently negotiated trade deals and threatened sharply higher duties if they did. In his State of the Union speech, Trump defended tariffs as tools “to make great deals” and called the Supreme Court’s ruling against them “disappointing.” Locally, New Zealand's business and consumer confidence data for January will be due in the coming days. In Australia, inflation came in slightly above expectations in the first month of 2026, highlighting persistent cost pressures that resurfaced in the second half of last year. Among notable laggards were Third Age Health Services (-5.7%), Chorus Ltd. (-4.0%), Ryman Healthcare (-3.7%), and Meridian Energy (-3.1%).

New Zealand shares edged up 26 points, or 0.2%, to 13,558 in Wednesday morning trade, extending gains for a third session and holding near a two-week peak. Sentiment was supported by Wall Street’s positive lead Tuesday as easing concerns over AI disruption supported risk appetite. Investors also looked ahead to U.S. President Trump’s State of the Union address for cues on trade policy. In key trading partner China, markets closed notably higher Tuesday after the Lunar New Year break, while the PBoC kept loan prime rates at record lows for a ninth straight month. Gains in Wellington, however, were tempered by caution ahead of upcoming January business and consumer confidence data. Sector-wise, consumer services and process industries mainly advanced, while healthcare, financials, and industrial services lagged. Notable movers included EBOS Group (3.7%), Tourism Holdings (2.3%), Property for Industry (1.8%), and Scales Corp (1.6%).

The NZX 50 climbed 112 points, or 0.8%, to finish at 13,532 on Tuesday, extending prior-session advances and hovering near a two-week high. Sentiment remained upbeat as U.S. futures were modestly higher following Monday’s Wall Street sell-off, which was driven by tariff uncertainty, geopolitical tensions, and concerns over AI investment. Traders also noted reports that China is urging Washington to drop unilateral tariff measures and warning of harmful conflict. Locally, Reserve Bank Governor Anna Breman said growth prospects in New Zealand look encouraging after three years of stagnation, with limited geopolitical risks, though cautious households remain a headwind. Despite the upside, strength was capped ahead of January business and consumer confidence data, due later this week. Energy minerals, healthcare, and process industries led advances. Solid performers included Channel Infrastructure (4.4%), Fisher & Paykel Healthcare (2.4%), Sanford Ltd. (2.2%), and Tourism Holdings (1.7%).