FX.co ★ NZX 50 Extends Gains to Start the Week

The NZX 50 rose 23 points, or 0.2%, to 13,642 in Monday morning trading, extending the previous session’s gains and reaching its highest level since February 27. The move tracked a rise in US futures, as Wall Street looked set to prolong its rally after the Dow Jones hit a record high. Sentiment was further supported by easing oil prices, which helped temper inflation concerns and reduced expectations of an imminent interest rate hike. The advance also reflected diminished fears of additional Federal Reserve tightening following last week’s jobs report, while traders looked ahead to the release of the Fed’s meeting minutes later this week. At the same time, caution persisted ahead of the RBNZ’s monetary policy decision on Wednesday, with markets widely expecting a 25 bps increase in the policy rate to 2.5%. Gains were led by financials, energy, materials, and consumer staples. Notable movers included Infratil, up 3.0%; Vulcan Steel, up 1.9%; Delegat Group, up 1.5%; Chorus, up 1.0%; and A2 Milk, up 0.9%.