FX.co ★ NZX Falls to Near 3-Week Low Amid Escalating Mideast Tensions

On Monday morning, New Zealand's stock market experienced a drop of 86 points, or 0.7%, bringing the NZX 50 index to 12,483. This decline mirrored a decrease in US stock futures after the United States conducted a strike on nuclear sites in Iran on Saturday evening (US time). This marks the fourth consecutive session of losses for the NZX 50, taking it to its lowest point since June 3, following Friday's closure in observance of Matariki Day. In response to the US military action, Iran's parliament sanctioned the closure of the critical Strait of Hormuz shipping channel on Sunday, exacerbating bearish market sentiment. Such a closure threatens to disrupt the global oil supply chain significantly. Additionally, the prevailing uncertainties surrounding global trade continue to fuel market caution. Across the board, most sectors recorded losses, including industrials, financials, healthcare, and utilities. Notable declines were seen in Auckland International Airport, which dropped by 2.4%, Infratil by 1.6%, Port of Tauranga by 1.3%, Meridian Energy by 1.1%, Fisher & Paykel by 0.7%, and Freightways by 0.5%. Additionally, both Ebos Group and Mainfreight experienced a decline of 0.4%.