FX.co ★ New Zealand Shares Close Higher

On Tuesday, New Zealand's leading stock index, the S&P/NZX 50, achieved a 0.7% increase, closing at 12,859. This was a notable improvement following a tepid day of trading previously. The rise was buoyed by optimism regarding potential trade agreements, stemming from the United States' extension of its tariff deadline. U.S. President Donald Trump issued the initial in a series of anticipated tariff warning letters, proposing tariffs ranging from 25% to 40%. However, he indicated a degree of flexibility by describing the August 1 deadline as “not 100% firm,” suggesting the possibility for continued negotiations. Domestically, attention is now directed towards Wednesday's interest rate decision, where it is anticipated that the Reserve Bank may pause its rate cuts for the first time since last August. Across the stock exchange, the healthcare and utilities sectors experienced gains, with notable increases seen in Fisher & Paykel (+2.6%), Meridian Energy (+3.1%), and Mercury NZ (+1.8%). In contrast, companies like A2 Milk (-3.9%), Mainfreight (-2.2%), and Chorus (-1.1%) recorded declines.