FX.co ★ NZX 50 Marks Best Daily Gain in Almost 5 Years

New Zealand's leading index, the S&P/NZX 50, recorded an impressive climb of over 3%, closing at 12,217 on Thursday—the most significant daily rise since June 2020. This upswing was driven by optimistic sentiment after the United States' decision to temporarily halt the imposition of higher tariffs. Specifically, the US has reduced duties to 10% for a 90-day period to facilitate ongoing trade negotiations with most countries. Nevertheless, there remains a note of caution due to President Trump's escalating tariffs on Chinese imports, raised to 125%, which poses a potential challenge for New Zealand's exports owing to China's status as its primary trading partner. On a domestic front, the Reserve Bank of New Zealand (RBNZ) recently lowered its key interest rate by 25 basis points to 3.5%. This move suggests the possibility of further rate cuts in response to threats to economic growth and inflation stemming from heightened global uncertainties. Almost all sectors experienced substantial gains, with transportation and miscellaneous stocks leading the way. Among the top performers were Auckland International Airport, rising by 4.5%; Mainfreight at 8.3%; Port of Tauranga with a 3.5% increase; Infratil up by 6%; followed by Fisher and Paykel at 4.6%, Meridian Energy at 2.4%, and Mercury NZ climbing by 3.5%.