FX.co ★ New Zealand Stocks Extend Losses

The NZX 50 index experienced a decline of 12 points, or 0.1%, settling at 12,821 in early trading on Wednesday. This marked the second consecutive session of losses for the index, primarily influenced by a downturn in financial, utility, and healthcare stocks. Traders exercised prudence due to ongoing trade negotiations between the United States and key trading partners such as China and the European Union. This cautious stance followed recent trade agreements with the Philippines announced on Tuesday. Additionally, market sentiment was affected by the inflation data released on Monday. Although inflation eased on a quarterly basis, it rose to a four-quarter high of 2.7% annually in the second quarter, slightly below the forecasted 2.8% but still within the Reserve Bank of New Zealand's (RBNZ) target range of 1–3%. This inflation report dampened expectations for interest rate reductions at the upcoming August meeting, as interest rates had been maintained in the previous two sessions. Early declines on the market included stocks such as Delegat Group (-1.9%), Infratil (-1.3%), Briscoe Group (-0.8%), Ebos Group (-0.4%), and ANZ Group (-0.2%).