FX.co ★ NZX 50 Muted After Food Inflation Data

On Tuesday morning, the NZX 50 Index remained relatively stable, lingering around the 12,689 mark following strong gains the previous day. Declines in the consumer durables and electronic technology sectors counterbalanced advancements in producer manufacturing and energy minerals. Investors assessed new statistics revealing that New Zealand's food inflation surged to 4.4% in May, marking a 17-month peak, up from 3.7% in April. Attention also shifted to significant domestic economic indicators expected this week, including the first-quarter GDP and the current account balance reports. Concurrently, U.S. futures witnessed a sharp decline due to escalating tensions in the Middle East, as Israel committed to intensified strikes on Iran. On the monetary landscape, the Federal Reserve is set to commence its policy meeting today, with an announcement slated for Wednesday. Although interest rates are broadly anticipated to remain unchanged for a fourth consecutive session, increased geopolitical tensions and rising oil prices could dampen prospects for immediate rate cuts. In terms of stock performance, AFT Pharmaceuticals increased by 1.9%, Skellerup rose by 1.1%, while Mainfreight decreased by 1.4% and Restaurant Brands NZ dropped by 1.0%.