The NZX 50 slipped 8 points, or 0.1%, to 13,072 in Wednesday morning trading, extending losses into a second session and mirroring overnight weakness on Wall Street. Sentiment soured after a stronger-than-expected inflation print, driven in part by higher oil prices, reinforced worries that the US Federal Reserve may leave interest rates unchanged for the rest of the year.
Local traders also stayed on edge ahead of the release of Q2 business inflation expectations later today, as well as New Zealand’s food inflation figures and the manufacturing PMI, both due later in the week. In addition, markets were watching for any progress toward a possible meeting between US President Trump and Chinese President Xi Jinping in the coming days.
Sector-wise, financials, consumer staples, communication services, and industrials weighed on the benchmark. Notable decliners included AFC Pharmaceuticals (-1.6%), Henderson Far East Income (-1.3%), Infratil (-1.0%), A2 Milk (-0.9%), ANZ Group (-0.8%), Freightways (-0.8%), and Chorus (-0.7%).
