New Zealand Stocks Edge Up in Morning Trade

The NZX 50 climbed 24 points, or 0.2%, to 13,675 in Wednesday morning trade, erasing losses from the previous two sessions, tracking gains on Wall Street overnight as softer inflation eased expectations of a Fed interest rate hike. The energy, materials, and healthcare sectors mainly drove the index. However, declines in real estate and information technology capped the gains. Traders also continued to assess a warning from RBNZ Chief Economist Paul Conway that sticky inflation caused by recent Middle East supply shocks could lead to further interest rate hikes. They also studied a statement from Fed Chair Warsh, who said he remained fully committed to restoring price stability and had no tolerance for persistently elevated inflation. On the data front, New Zealand's electronic card spending fell 1.4% mom in June, reversing a downwardly revised 1.6% increase in May. Among early gainers were AFT Pharmaceuticals (0.8%), Ebos Group (0.8%), and Fisher & Paykel (0.6%).

The NZX 50 dropped 72 points, or 0.5%, to 13,651 on Tuesday, falling for the second consecutive session and tracking the decline on Wall Street overnight after US President Trump vowed to reinstate a blockade on Iranian shipping through the Strait of Hormuz. Rising oil prices due to the escalating conflict in the Middle East continued to weigh on sentiment as inflation concerns fueled expectations of further interest rate hikes. Sentiment was also pressured by a warning from RBNZ Chief Economist Paul Conway that sticky inflation caused by recent Middle East supply shocks could lead to further interest rate hikes. On the data front, New Zealand's visitor arrivals rose 6.7% in May, marking the slowest growth in four months. The financial, industrials, and utilities sectors led the declines, with notable losses from Auckland International Airport (-3.3%), ANZ Group (-2.5%), Infratil (-1.9%), Seeka Limited (-1.0%), Summerset Group (-0.9%), and Westpac Banking Corp (-0.8%).

The NZX 50 fell 20 points, or 0.2%, to 13,703 in Tuesday morning trade, extending losses from the previous session, mainly weighed down by losses in the financial, communication services, technology, and utilities sectors. Rising oil prices due to the escalating conflict in the Middle East continued to pressure sentiment as inflation concerns fueled expectations of further interest rate hikes. Investors also awaited the release of US inflation data, along with key Chinese economic data, including Q2 GDP, due later this week. However, Monday's data helped limit the decline as New Zealand's private sector recorded its strongest growth since December 2025. On the data front, New Zealand's visitor arrivals rose 6.7% in May after rising 8% in April, marking the slowest growth in four months. Infratil shed 1.9%, A2 Milk dropped 1.8%, Ebos Group fell 1.7%, Fletcher Building went down 1.4%, and Henderson Far East Income declined 0.6%.