NZX 50 Tracks Wall Street Lower

New Zealand stocks fell 19 points, or 0.1%, to 13,800 in Thursday morning trade, after gaining in the previous session, tracking a downbeat session on Wall Street overnight following a surge in Treasury yields and rising oil prices. Oil continued to rise, raising concerns over inflation and boosting bets that central banks would raise interest rates. Traders also anticipated the release of US inflation data later this week for clues on the Fed's monetary policy decision at its upcoming meeting. Wednesday's data from China, New Zealand’s top trading partner, also pressured sentiment, as consumer and producer price pressures continued to rise amid higher oil prices. Consumer staples, financials, communication services, and materials mainly weighed on the index, with early losers including Briscoe Group (-0.9%), A2 Milk (-0.8%), Hallenstein Glasson (-0.8%), F&C Investment (-0.6%), Infratil (-0.6%), and Delegat Group (-0.4%).

New Zealand stocks climbed 27 points, or 0.2%, to close at 13,819 on Wednesday, halting losses from the previous two sessions, buoyed by gains in financials, utilities, and communication services. Tuesday’s report from Moody’s ratings agency continued to support sentiment, saying New Zealand’s economic recovery is underway, though warning that several issues remain unresolved. However, a downbeat session on Wall Street overnight limited the gains, as rising oil prices amid the escalating conflict in the Middle East raised concerns over inflation and boosted bets that central banks would raise interest rates. Fresh data from China, New Zealand’s top trading partner, also capped the index, as consumer and producer price pressures continued to rise amid higher oil prices. Among the top movers were Sanford (1.6%), Mercury NZ (1.4%), Contact Energy (1.2%), Mainfreight (0.9%), Infratil (0.8%), ANZ Group (0.7%), Delegat Group (0.7%), and A2 Milk (0.5%).

New Zealand stocks advanced 17 points, or 0.1%, to 13,810 in Wednesday morning trade, erasing losses from the previous two sessions, supported by gains in communication services, utilities, technology, and real estate. A report from Moody’s ratings agency continued to lift sentiment, saying New Zealand’s economic recovery is underway, though warning that several issues remain unresolved. However, a downbeat session on Wall Street overnight capped the gains, as rising oil prices amid the escalating conflict in the Middle East raised concerns over inflation and boosted bets that central banks would raise interest rates. Caution also prevailed ahead of China’s consumer and producer price data later today, amid persistently weak domestic demand. Among the early gainers were Gentract Group (2.1%), Sanford (1.8%), Mercury NZ (1.4%), Contact Energy (0.7%), and F&C Investment Trust (0.5%).