FX.co ★ New Zealand Stocks End Lower

The benchmark S&P/NZX 50 index in New Zealand declined by 0.7% to conclude at 13,142 on Monday, reversing gains observed in the previous session. This downturn was primarily attributed to losses in the healthcare and non-energy minerals sectors. Notable declines were seen in companies such as Fisher & Paykel, which fell by 0.9%, Ebos Group with a 3.9% drop, Summerset Group declining by 2.3%, and Fletcher Building decreasing by 2.6%. Other sectors, including electronics, commercial, consumer durables, industrial, and utilities, also experienced downward pressure. Concurrently, investors are eagerly awaiting a potential interest rate reduction by the Reserve Bank, prompted by signs of economic frailty. The country's GDP contracted more than anticipated in the second quarter, and the trade deficit surpassed predictions, prompting markets to fully anticipate a 25 basis point rate cut in October, with a roughly 25% probability of a larger 50 basis point adjustment. In another development, market sentiment remained largely unaffected by the People's Bank of China's decision to keep loan prime rates unchanged, which failed to stimulate demand in China amidst a decelerating economy. Given New Zealand's robust trade ties with China, the country remains particularly responsive to economic signals emanating from China.