New Zealand Stocks Track Wall Street Lower

The NZX 50 lost 69 points, or 0.5%, to 13,691 in Thursday morning deals, after a slight gain in the previous session, tracking a decline on Wall Street overnight as faster-than-expected inflation data raised expectations of Fed rate hikes. Rising oil prices pressured sentiment amid concerns over inflation and the RBNZ's tightening monetary policy, after the central bank hiked interest rates in July and September. Caution also prevailed ahead of the release of New Zealand's food inflation and business PMI data on Friday. All sectors traded in the red, led by financials, energy, technology, and communication services. Among the biggest losers were South Port New Zealand (-2.5%), Infratil (-2.0%), Chorus (-1.2%), Port of Tauranga (-1.0%), Channel Infrastructure (-0.9%), Fisher & Paykel (-0.8%), Hallenstein Glasson (-0.8%), Freightways Group (-0.7%), and Meridian Energy (-0.7%).

The NZX 50 gained 11 points, or 0.1%, to close at 13,760 on Wednesday, erasing losses from the morning and the previous session, mainly supported by gains in technology, real estate, utilities, and communication services. Fresh data from China, New Zealand's top trading partner, boosted sentiment as export growth in China remained robust, while annual inflation came in below expectations. However, declines in financials and energy limited the gains. Traders also awaited US inflation data for clues about the Fed's interest rate decision at its upcoming meeting, as well as New Zealand's food inflation and business PMI data due later this week. Traders continued to monitor the war in the Middle East, including the Saudi Arabia-Houthi conflict and its impact on oil prices. Notable gainers included Contact Energy (1.8%), Hallenstein Glasson (1.7%), Vulcan Steel (1.5%), Summerset Group (1.2%), Chorus (1.1%), and A2 Milk (0.6%).

The NZX 50 dropped 48 points, or 0.4%, to 13,702 in Wednesday morning trade, extending losses from the previous session and tracking a fall on Wall Street overnight, weighed down by semiconductor heavyweights. Caution mounted ahead of the release of China's September CPI, PPI, and trade data later today amid weak domestic demand and rising oil prices. Traders also awaited US inflation data for clues about the Fed's interest rate decision at its upcoming meeting, as well as New Zealand's food inflation and business PMI data due later this week. Traders continued to monitor the war in the Middle East, including the Saudi Arabia-Houthi conflict and its impact on oil prices. Financials, energy, technology, and consumer discretionary stocks mainly weighed on the index, with notable losses from AFT Pharmaceuticals (-2.0%), Infratil (-1.8%), Briscoe Group (-1.8%), Freightways Group (-1.5%), Summerset Group (-1.2%), Meridian Energy (-0.9%), Channel Infrastructure (-0.9%), and A2 Milk (-0.6%).