FX.co ★ New Zealand Shares Slip to Over 4-Week Low

The NZX 50 index declined by 88 points, or 0.7%, reaching 13,483 during morning trading on Wednesday. This marks the third consecutive session of losses, following the downturn on Wall Street overnight. The drop was attributed to heightened trade tensions after President Trump threatened to impose new tariffs starting at 10% on February 1, increasing to 25% by June, targeting eight European nations. The broader market fell to its lowest point since December 19, with nearly all sectors experiencing declines, particularly the healthcare sector. Investors are closely monitoring the release of the fourth-quarter domestic inflation data later this week, with expectations for it to remain at 3%—the highest since the second quarter of 2024. This data will likely influence the Reserve Bank of New Zealand's forthcoming monetary policy decisions. Market sentiment was further tempered as investors awaited Prime Minister Christopher Luxon's scheduled announcement of the general election date for this year. Noteworthy underperformers included Fletcher Building, down by 2.3%, Serko falling by 1.6%, Fisher & Paykel decreasing by 1.4%, and Fonterra slipping by 1.0%.