FX.co ★ New Zealand Shares Set to End Week on Muted Note

New Zealand's stock market saw a modest increase of 17 points, or 0.12%, reaching 12,851 on Friday morning. This marks the third consecutive session of gains as investors reviewed new data. Notably, July's manufacturing activity showed growth for the first time in three months, with output and new orders accelerating at the quickest rate since 2022. On the economic front, food inflation climbed to a near two-year peak of 5.0%, and visitor arrivals in June noted a 0.8% year-on-year increase, the weakest growth in 11 months. Meanwhile, US futures also made progress, attempting to rebound from increased wholesale inflation. The sectors of logistics and communications contributed significantly to early gains, with notable performers including Winton Land (up 2.5%), Restaurant Brands NZ (up 2.0%), and Skellerup Holdings (up 1.9%). Over the week, the NZX 50 remained largely stable following strong prior gains. Investors are now turning their attention to the upcoming July economic data from China, such as industrial production and retail sales figures, as well as the forthcoming RBNZ decision. Markets are anticipating a 25 basis point cut, with another potential cut expected later this year or in early 2026.