FX.co ★ NZX 50 Retreats from 4-Year High

New Zealand stocks experienced a decline of 31 points, or 0.2%, to settle at 13,250 on Tuesday morning, thus bringing an end to a three-day winning streak. The downturn was primarily influenced by setbacks in the communications, consumer durables, and healthcare sectors as investors opted to secure profits following the NZX 50's attainment of a near four-year high in the previous session. The negative sentiment was exacerbated by disappointing August trade data from China, New Zealand’s principal trading partner, where both exports and imports grew less than anticipated amidst escalating trade barriers and lackluster domestic demand. Additionally, on the local front, manufacturing sales in the second quarter dropped by 0.6% year-over-year, recording the first contraction in three quarters and overturning the 4.1% growth registered in the first quarter. However, a slight rise in U.S. futures provided some cushioning against further declines, buoyed by strong performances on Wall Street on Monday, where the Nasdaq reached a record high preceding crucial upcoming inflation and employment data. Among the biggest fallers were Spark NZ, which plunged 4.4%, followed by Ryman Healthcare at -1.6%, T&G Global at -1.5%, Infratil at -1.2%, and Meridian Energy at -1.0%.