The NZX 50 rose 24 points, or 0.2%, to 13,675 in Wednesday morning trade, reversing losses from the previous two sessions. The move tracked overnight gains on Wall Street, where softer inflation data eased expectations of further interest rate hikes from the Federal Reserve. Strength in the energy, materials, and healthcare sectors led the advance, while declines in real estate and information technology limited overall gains.
Investors continued to weigh comments from RBNZ Chief Economist Paul Conway, who warned that stubborn inflation, exacerbated by recent supply disruptions in the Middle East, could necessitate additional rate increases. They also parsed remarks from Fed Chair Warsh, who reiterated his firm commitment to restoring price stability and his intolerance for persistently elevated inflation.
On the data front, New Zealand’s electronic card spending fell 1.4% month-on-month in June, unwinding a downwardly revised 1.6% increase in May. Among the early movers, AFT Pharmaceuticals and Ebos Group each gained 0.8%, while Fisher & Paykel advanced 0.6%.
