FX.co ★ NZX 50 Slips on First Trading Day of December

On Monday, New Zealand’s S&P/NZX 50 index experienced a 0.3% decline, settling at 13,449, erasing last week's gains amid significant downturns in the financial sector spurred by anticipated shifts in monetary policy. Despite the recent decision by the Reserve Bank to lower its cash rate by 25 basis points to 2.25%, marking the lowest point since June 2022, forecasts suggest only a 20% probability for another rate reduction next year. Market participants are keenly observing as Reserve Bank Governor Anna Breman is set to address Parliament this week, which may provide insights into the future direction of policy. Notably, Westpac Banking fell by 1.8%, with other sector members such as ANZ declining by 0.9%, Precinct Properties by 1.6%, and Property for Industry by 1.2%. Additional underperformers included Sanford, which dropped by 4.3%, A2 Milk by 3.1%, Turners Automotive by 2.4%, Contact Energy by 1.9%, and Gentrack also by 1.9%. In terms of economic data, October saw a decline in building permits, and China's official Purchasing Managers' Index revealed an ongoing contraction in manufacturing for the eighth month, alongside a decrease in services activity, factors that may impact New Zealand's export landscape.