FX.co ★ New Zealand Stocks Slip at Start of the Week

On Monday morning, the NZX 50 index experienced a decline of 49 points, or 0.4%, settling at 13,371. This decline continued the downturn observed in the previous session, with significant pressure arising from sectors such as consumer staples, financials, and healthcare. Investors showed restraint as they awaited the Reserve Bank of New Zealand's (RBNZ) monetary policy decision scheduled for later this week. It is widely anticipated that the RBNZ will reduce the interest rate by 25 basis points to 2.25%, marking the lowest point since June 2022, in response to elevated unemployment and a contracting GDP. Market participants are also set to evaluate upcoming economic indicators, including retail sales, business confidence, and consumer sentiment data due for release this week. Meanwhile, optimism from Wall Street's positive close on Friday tempered the index's losses, amid growing speculation of a possible interest rate cut by the Federal Reserve in its December meeting. Early trading witnessed declines in companies such as A2 Milk (-1.7%), Mainfreight (-1.3%), Contact Energy (-1.0%), Infratil (-0.9%), and Fisher & Paykel (-0.5%). Additionally, Kiwi Property saw a 0.5% drop following the announcement of a substantial 77% year-on-year decrease in net profit for the six months ending September.