FX.co ★ NZX 50 Falls to 2-Week Low on Weak GDP Data

On Thursday, New Zealand's S&P/NZX 50 index fell by 0.8%, closing at 13,120, marking its lowest point in two weeks. This decline followed economic data indicating a larger-than-anticipated contraction in the economy. Gross Domestic Product (GDP) decreased by 0.9% in the June quarter, exceeding market predictions of a 0.3% drop. This contraction came after a revised 0.9% increase in the previous quarter, primarily due to downturns in manufacturing, construction, and export sectors. Additionally, economic challenges have been exacerbated by the United States' imposition of tariffs on New Zealand's goods, heightening concerns regarding external demand and trade competitiveness. In international developments, the US Federal Reserve reduced interest rates as anticipated on Wednesday, hinting at a cautious stance for future monetary policy adjustments. Within the corporate sector, notable declines were observed among key companies: Meridian Energy (-1.05%), Auckland International Airport (-1.0%), Infratil (-3.1%), Mercury NZ (-1.8%), and a2 Milk (-2.6%). Other significant declines were recorded by Ryman (-2.0%), Kiwi Property (-2.8%), Channel Infrastructure (-2.0%), and Vista Group (-1.6%).