FX.co ★ New Zealand Shares Pare Losses

On Friday, the S&P/NZX 50 index experienced a slight decline of 0.15%, closing at 13,419. This dip followed a recovery from an initial sell-off that echoed a steep drop in U.S. markets. The decrease in American stocks was largely due to ongoing concerns about overvalued tech stocks, along with mounting speculation that the Federal Reserve will maintain its current interest rates rather than implement cuts in December. Additionally, domestic sentiment was negatively impacted by New Zealand's unexpectedly large trade deficit. Investors are now turning their attention to the Reserve Bank of New Zealand's policy meeting next week, where it is widely anticipated that the central bank will reduce its cash rate by 25 basis points. Key decliners in the market included Infratil, which fell by 3.35%; Air New Zealand, down 0.8%; SkyCity Entertainment, which decreased by 1.2%; Fletcher Building, slipping 0.3%; and Meridian Energy, which dropped 0.2%. In contrast, Gentrack surged 4.7% following the selection of its new G2 platform by Pennon Water Services, signifying a significant entry into the UK market, and was further bolstered by Bell Potter's reaffirmed buy rating. Overall, the NZX 50 recorded a weekly loss of 0.3%, marking its second consecutive week in decline.