FX.co ★ New Zealand Shares Inch Higher to Kick Off July

New Zealand's stock market experienced a modest increase of 17 points, or 0.1%, bringing the NZX 50 index to 12,618 on the first trading day of the new month, marking the fourth consecutive session of gains. This upswing was in alignment with the positive momentum from Wall Street, driven by reduced concerns over trade tensions and growing expectations for upcoming interest rate cuts. Domestically, business confidence showed recovery in June, bouncing back from a ten-month low observed in May. Additionally, New Zealand witnessed a year-on-year increase of 10.4% in building permits for May, a notable reversal from the 14.6% decline seen in April. Meanwhile, in China, New Zealand's primary trading partner, there was a notable increase in services activity — the highest in three months — while the slowdown in manufacturing showed signs of easing. This comes as the Chinese government continued its efforts to mitigate the impacts of trade challenges and subdued domestic demand. Nevertheless, the upward movement in the NZX 50 was tempered by caution ahead of the release of China's private manufacturing PMI data scheduled for later the same day. Sectors such as industrial services, healthcare, and consumer non-durables were prominent performers, with notable gains from Napier Port Holdings (2.5%), AFT Pharmaceuticals (2.2%), and Millennium & Copthorne Hotels (1.8%).