FX.co ★ New Zealand Stocks Set to Close Week on Low Note

The NZX 50 index experienced a decline of 29 points, or 0.2%, settling at 13,570 during Friday morning trading, continuing the downturn witnessed in the previous session. This dip mirrored the overnight slide on Wall Street, driven by a widespread sell-off in AI-related stocks as expectations for a Federal Reserve interest rate cut in December waned. Nearly every sector posted losses, with the technology, healthcare, and utilities sectors leading the decline. Investors also anticipated a range of economic reports from China, New Zealand’s primary trading partner, scheduled for later in the day to assess the mainland's economic outlook. Nevertheless, the anticipation of a 25 basis point rate cut by the Reserve Bank of New Zealand (RBNZ) this month mitigated further losses. Additionally, fresh domestic data offered some support, with the Business Performance Index reaching a three-month peak. Early declining stocks included Gentrack Group (-2.6%), Mainfreight (-2.2%), Ryman Healthcare (-1.7%), and Briscoe Group (-0.9%). For the week, the index is on track for a 0.2% decrease, which would represent the first weekly decline in four weeks.