FX.co ★ New Zealand Stocks End Lower

On Monday, New Zealand's benchmark S&P/NZX 50 index dipped by 0.2%, closing at 13,208. This decline followed a previously subdued trading session as investors anticipated the release of Q2 GDP data later in the week. The economy is forecasted to re-enter contraction territory, with GDP expected to decrease after two quarters of consecutive growth, indicating that recent economic momentum may have been transient. This prediction aligns closely with the central bank's expectations and underscores persistent economic challenges. Furthermore, a new PMI survey pointed to continuing weakness in the services sector for August, as it remained significantly below its long-term average and extended its contraction trend to 18 months. Investor sentiment was additionally dampened by a series of disappointing data from China, New Zealand’s principal trading partner, which presents potential threats to the export-reliant economy. Within the stock market, communication and consumer durables sectors experienced the most significant losses, with Spark NZ dropping 1.7% and Chorus declining 3.1%, whereas Vital Limited saw a substantial surge of over 11%.