FX.co ★ New Zealand Shares Drop After Two-Day Gains

The NZX 50 index experienced a decline of 62 points, or 0.4%, reaching 13,516 on Thursday morning. This downturn interrupted a two-day upward trend, driven by losses in the healthcare, industrial services, and process industries sectors. Investor caution increased in anticipation of the upcoming U.S. Personal Consumption Expenditures (PCE) index release on Friday, which is expected to influence interest-rate policy decisions ahead of the Federal Reserve's final meeting of the year next week. While it is broadly anticipated that the central bank will reduce interest rates by 25 basis points following two prior cuts this year, ongoing uncertainties surrounding leadership have continued to dampen confidence in the policy trajectory. Further contributing to a pessimistic mood were signs of decelerating momentum in China, New Zealand's major trading partner. A private survey indicated that China's services sector expanded at its slowest rate in five months in November, despite measures by Beijing to boost activity. Stocks that saw early declines included Summerset Group, down by 2.4%; Fisher & Paykel Healthcare, which fell 1.0%; Spark NZ with a 0.9% decrease; and Hallenstein Glasson Holdings, dropping by 0.8%.