FX.co ★ New Zealand Equities Muted in Morning Trade

The NZX 50 hovered around the 12,101 mark in early Tuesday trading, remaining largely unchanged after showing some gains over the past three sessions. This stability resulted from increases in the financial, energy, and tech sectors, which balanced out declines in the industrial, communication services, and consumer staples sectors. Investor sentiment was cautious following New Zealand Finance Minister Nicola Willis's announcement that baseline spending in the 2025 budget would see reductions due to challenging economic conditions. Despite this, the government maintains its positive outlook for economic growth in the coming year, anticipating a decline in unemployment in the latter half. The market's caution was further influenced by ongoing US-China trade discussions and anticipation of key economic data releases from China and the US, including Chinese PMI figures, expected later in the week. Notably, Colonial Motor and Fletcher Building saw declines of 2.2% and 1.6%, respectively, whereas Mainfreight and F&C Investment registered gains of 0.9% and 0.7%.