FX.co ★ New Zealand Shares Snap 3-Day Gain

The S&P/NZX 50 index experienced a 0.3% decline on Tuesday, closing at 12,061 and ending its three-day upward trend. This downturn was largely attributed to declines in the transportation, utilities, and healthcare sectors. The market sentiment remained cautious following New Zealand Finance Minister Nicola Willis's announcement about reducing baseline spending in the 2025 budget due to deteriorating economic conditions. However, the government continues to anticipate accelerated growth and decreasing unemployment rates in the latter half of the year. Further dampening sentiment were the mixed messages regarding trade developments between the US and China. Additionally, private data suggesting tepid labour market forecasts aligned with market expectations of a 90% probability that the Reserve Bank will implement a 25 basis point rate cut next month. Notable laggards included Auckland International Airport, down 1.8%, Mainfreight with a 1.9% drop, Meridian Energy declining by 0.8%, and Fisher & Paykel Healthcare decreasing 0.7%.