New Zealand's leading S&P/NZX 50 index advanced by 1.1%, reaching 13,434 at the close of Wednesday's trading session—its highest point since January 2021. This marks the third consecutive day of gains, primarily driven by a surge in utility stocks. The upswing followed the New Zealand government's announcement of support for three majority state-owned power companies—Genesis Energy, Mercury NZ, and Meridian Energy. The government's backing aims to assist these companies in raising capital for electricity generation projects, even if they aren't renewable. Meridian's shares led the sector with a 4.7% jump, while Genesis and Mercury saw increases of 2.1% and 1.35%, respectively. Other companies in the sector, such as Contact Energy and Vector, also experienced gains of 0.9% and 0.8%.
Globally, the United States experienced its first government shutdown in six years, following Congress's unsuccessful attempts to approve a temporary spending bill on Tuesday. This development poses the risk of delaying crucial economic data releases, which could, in turn, complicate the Federal Reserve's policy decisions.
