FX.co ★ New Zealand Stocks Fall Ahead of RBNZ Decision

On Tuesday, New Zealand's S&P/NZX 50 index experienced a slight decline of 0.2%, closing at 13,480. This downturn reversed earlier gains that had pushed the index to a two-week high. Investors are currently preparing for the Reserve Bank's forthcoming decision on interest rates, anticipated tomorrow. Market participants are factoring in a definitive 25 basis points cut, with a slim possibility of a larger, unexpected 50 basis points reduction, akin to that seen in October. Crucially, attention will be aimed at the guidance accompanying this decision, amidst conjecture that this might signal the end of the current rate-cutting phase. Additionally, investors are keenly awaiting significant economic data, such as retail sales, business confidence, and consumer sentiment, to assess whether the current stimulus measures are permeating the economy. On the equities front, financial stocks saw notable declines, with Westpac Banking down 1% and ANZ Group decreasing by 1.1%. Other substantial losses were observed in Fisher & Paykel, which fell by 1.6%, Infratil, which dropped by 3.4%, Ebos Group, down by 1.9%, and Vector Limited, which decreased by 1.8%.