FX.co ★ New Zealand Stocks Inch Lower to Open August

On the first trading day of August, New Zealand's stock market saw a slight decline, with the index dropping 12 points, or 0.1%, to settle at 12,811. This marked the third consecutive session of losses, primarily driven by downturns in the commercial services, financials, and non-energy minerals sectors. The market sentiment was negatively impacted by a decline in U.S. futures following President Trump's recent executive order issued late Wednesday, which implemented new tariff rates on specific trading partners, effective from August 1st. The NZX 50 is heading towards a second consecutive weekly decline, currently down about 0.3%. This comes amidst growing concerns about dwindling consumer confidence, fueled by fears of potential GDP and employment decreases in the second quarter. In China, a crucial trading partner for New Zealand, the services sector in July experienced its slowest growth in eight months, and factory output contracted for the fourth month in a row. Nevertheless, losses were somewhat mitigated by anticipation that the Reserve Bank of New Zealand may further relax monetary policy in response to subdued inflation levels. Prominent decliners included Summerset Group, which fell by 1.4%, Colonial Motor, down by 1.3%, and Fletcher Building, which saw a 1.0% decrease.