FX.co ★ New Zealand Stocks Muted, Set for Weekly Losses

The NZX 50 index remained steady on Friday morning, lingering at approximately 12,657, following a downturn in the previous session as market participants processed New Zealand's budget for 2025. The fiscal strategy presented a slightly softened outlook with subdued short-term growth, coupled with new tax incentives intended to stimulate investment, which led to a downward adjustment in revenue projections. On the economic data front, retail sales in New Zealand rose by 0.8% quarter-on-quarter in the first quarter of 2025, following a 0.9% increase in the preceding fourth quarter. Meanwhile, on Wall Street, the S&P 500 finished slightly lower on Thursday as investors balanced concerns over escalating interest rates alongside the growing U.S. deficit. The index is poised for its first weekly decline in a month, dipping approximately 1% amid apprehensions surrounding global trade tensions. Attention is now directed towards the Reserve Bank of New Zealand's policy meeting next week, with markets anticipating a 25 basis point rate reduction in response to moderate inflation. Strengths in shares of AFT Pharmaceuticals (up 3.9%), Sky Network TV (up 2.8%), and Briscoe Group (up 1.5%) provided some balance to losses seen in Serko Ltd. (down 2.6%), Infratil Ltd. (down 1.4%), and Manawa Energy (down 1.1%).