FX.co ★ NZX Falls after Inflation Data

In morning trading on Thursday, New Zealand's stock market experienced a decline, with the NZX 50 index falling by 34 points, or 0.3%, to 12,034. This drop reversed gains from the preceding session, primarily due to downturns in the energy, consumer staples, and financial sectors. Investor sentiment was cautious following a report that showed the inflation rate for the first quarter had risen to 2.5% year-on-year, marking the highest level since the second quarter of 2024. This increase in inflation dampened expectations for another interest rate cut by the Reserve Bank of New Zealand (RBNZ). Additionally, the NZX 50 mirrored a decline seen overnight on Wall Street, attributed to widespread sell-offs amid concerns over the Federal Reserve's monetary policy and fears of heightened inflation driven by new tariff implementations. Among the major early decliners were Summerset Group, which fell by 2.3%, A2 Milk down by 1.3%, Contact Energy sliding 1.2%, along with ANZ Group and Infratil each declining 1.0%. The stock market will remain closed on Friday due to the Easter holiday. Despite the recent volatility, the index is on track for a 0.1% increase for the week, marking its first weekly advance in three weeks, bolstered by optimism regarding potential tariff relief from the United States.