FX.co ★ NZX 50 Posts Biggest Daily Loss in Over 2 Months

The S&P/NZX 50 Index experienced a significant decline on Tuesday, dropping 1.2% to 12,760, marking its most substantial loss since late May and negating gains from the previous session due to widespread losses across various sectors. Leading the downturn were stocks in the technology and transportation sectors, with notable decreases in Gentrack and Vista Group, both down 5.1%, Serko falling 2.6%, and Mainfreight slipping 2.9%. Additional pressure was evident in the utilities, communications, and healthcare sectors, where Meridian Energy fell by 1.9%, Contact Energy by 1.4%, Spark NZ by 2.5%, and Ryman by 2.1%. The decline was exacerbated by the U.S. decision to increase tariffs on New Zealand exports from 10% to 15%, which poses heightened risks for New Zealand's export-reliant economy. Offsetting some of these losses were reports that the Trump administration delayed imposing broad tariffs on China for 90 days, just before the prior agreement concluded. In a reciprocal move, China’s Ministry of Commerce also suspended additional tariffs on U.S. goods for the same duration, which may reduce export risks given New Zealand’s strong trade relationship with China.