FX.co ★ New Zealand equities Eye Third Weekly Advance

New Zealand's stock market experienced a decline on Friday morning, with the index dropping 23 points, or 0.2%, to settle at 12,681. This dip marks the second consecutive day of losses, primarily driven by setbacks in the industrial services, non-energy minerals, and healthcare sectors. Investors exhibited caution as they awaited the expiration of the 90-day trade truce on July 9, alongside the upcoming policy decision from the Reserve Bank of New Zealand (RBNZ) next week. The RBNZ is largely anticipated to maintain interest rates at 3.25%, but there is prevailing concern over the fallout from U.S. tariff policies. Among the notable losers, Restaurant Brands NZ declined by 2.3%, while Fletcher Building, Serko, and Mainfreight registered losses ranging from 1.4% to 1.7%. Despite these setbacks, the NZX 50 is still poised for a positive outcome for the week, aiming for a third consecutive weekly gain with an approximate rise of 0.9%. This optimism is underpinned by record highs on Wall Street and positive sentiment regarding the easing of U.S. export restrictions on semiconductor chips to China. Concurrently, weaker-than-expected factory and services data from China in June have led to speculation that Beijing might introduce new stimulus measures, especially with the key Politburo meeting on the horizon later this month.