FX.co ★ NZ Shares Recover from Early Losses

The S&P/NZX 50 index increased by 0.4% to close at 13,355 on Monday, recovering from earlier setbacks, fueled primarily by gains in the financial and utility sectors. Leading the charge among financials was Westpac Banking, which experienced a 1.7% uplift, closely followed by ANZ Group with a 1.5% increase and Precinct Properties ascending by 1.6%. In the utilities sector, Contact Energy saw a 1.1% rise, marking its highest point since October 2, following Infratil’s announcement of plans to acquire an additional 4.92% stake in the company. On the economic data side, New Zealand’s annual inflation for the third quarter rose to 3%, hitting the upper limit of the Reserve Bank of New Zealand's 1–3% target range yet aligning with market expectations. Analysts commented that the central bank had anticipated a potential overshoot, offering some reassurance in the results. The data also indicated that underlying inflation was under control, reinforcing predictions of a 25 basis point rate cut in November, with a minor possibility of a more significant adjustment. Furthermore, market mood was buoyed by easing trade tensions between the US and China, though broader gains were tempered by weak economic data from China, a key trading partner.