FX.co ★ Second Weekly Decline Looms for New Zealand Equities

New Zealand stocks declined by 144 points, or 1.1%, reaching 13,295 during Friday morning trading. This decline erased previous gains and brought the market closer to a one-month low. Market sentiment deteriorated following Wall Street's downturn on Thursday, spurred by renewed concerns over inflated AI valuations and diminishing expectations for a Federal Reserve rate cut in December. Local markets are on track for their second consecutive weekly loss, currently down approximately 1.3%, as investors remain cautious ahead of next week's Reserve Bank of New Zealand (RBNZ) decision, despite anticipated measures to support economic growth. However, the impact of these losses was slightly mitigated by New Zealand's narrower trade deficit in October, with export growth surpassing imports. In China, New Zealand's leading trading partner, the central bank maintained its key lending rates at historic lows for the sixth consecutive meeting on Thursday to stimulate the sluggish economy. Most sectors within the NZX 50 experienced declines, with Gentrack Group falling 3.1%, Infratil 2.9%, Ryman Healthcare 2.8%, and Fisher & Paykel Healthcare 2.4%.