FX.co ★ New Zealand Stocks Close Flat

New Zealand's S&P/NZX 50 index concluded the session nearly unchanged at 12,880 on Wednesday as market participants processed the local employment report. The unemployment rate rose to 5.2% in the second quarter, marking its highest point in nearly five years, up from 5.1% in the first quarter. However, it slightly surpassed the anticipated figure of 5.3%. Despite this increase, the data suggests a persisting weakness in the labour market, which bolsters the argument for the Reserve Bank of New Zealand to consider a rate cut at its forthcoming meeting in August. Currently, markets are factoring in a 90% likelihood of a 25 basis point reduction, with room for further cuts to reach a minimum of 2.75% either later this year or at the start of the next. Additionally, concerns remain about the prospects of New Zealand's export-driven economy, particularly with an impending 15% U.S. tariff set to be implemented on August 7. In terms of notable large-cap movements, Infratil rose by 1.3%, Spark NZ gained 1%, while Auckland International Airport declined 1.2%, and Meridian Energy decreased by 0.9%.