FX.co ★ New Zealand Stocks Subdued But Set for 3rd Yearly Gains

On Thursday morning, the NZX 50 saw a slight decline during the final trading session of the year, hovering around 13,540, following a modest gain on the previous day. This movement mirrored the losses on Wall Street overnight, which were influenced by the December Federal Reserve minutes. The minutes highlighted caution surrounding potential rate cuts amid ongoing inflation concerns in the United States. The market experienced low trading volumes due to investor caution ahead of China's PMI data release, given China is New Zealand's largest trading partner. Losses were predominantly noted in industrial services and producer manufacturing sectors, although the declines were somewhat offset by gains in consumer durables, energy minerals, and commercial services. Notable stocks underperforming included Sky Network TV, Vector Ltd., and South Port NZ, with declines of 1.5%, 1.4%, and 1.3% respectively. Despite the subdued trading activity, the benchmark index is set to record its third consecutive annual increase, currently up about 3%, supported by stable borrowing cost expectations and continued economic recovery. Trading will conclude early due to the New Year holiday, with markets reopening on January 5.