FX.co ★ New Zealand Stocks Extend Falls to Begin the Week

The NZX 50 index experienced a decline of 77 points, or 0.6%, settling at 12,710 by midday on Monday, marking its second consecutive session of decline. This downturn was primarily influenced by weakness in sectors such as technology services, non-energy minerals, healthcare, and manufacturing. Investor sentiment took a hit following recently released data indicating that New Zealand's services sector contracted for the third consecutive month in April. This contraction is attributed to factors such as weak consumer demand, elevated living costs and interest rates, economic and geopolitical uncertainties, seasonal slowdowns, and diminished business confidence, all exerting pressure on overall activity. Further contributing to the cautious atmosphere, US stock futures plummeted after Moody’s downgraded the US credit outlook. Traders also remained cautious in anticipation of the release of April activity data from China, New Zealand's largest trading partner, expected later today. Noteworthy declines were observed among companies such as Fisher & Paykel Healthcare (-1.3%), Infratil Ltd. (-1.1%), Fletcher Building (-1.5%), and Summerset Group Holdings (-0.9%).