FX.co ★ New Zealand Stocks Erase Early Gains

New Zealand's S&P/NZX 50 index experienced a marginal decline of 0.1%, closing at 12,760 on Thursday, following a dip after initial gains. This marks the index's second consecutive decrease as traders express caution over potential future trade tensions. On Wednesday, President Donald Trump issued additional letters increasing tariff rates on imports from a total of seven more countries, bringing the total targeted to 21 nations with tariffs ranging from 20% to 40%. This action follows his earlier notification to the leaders of 14 other countries. Market sentiment was further influenced by the Reserve Bank of New Zealand's decision to halt its series of interest rate cuts, concluding a streak of six consecutive reductions since August 2024. Economically, New Zealand saw visitor arrivals increase by 6.1% year-on-year in May, totaling 190,593, although this marks a slowdown from the 18.8% growth witnessed in April. On the business front, significant losses were noted among major firms such as Fisher & Paykel (-1.7%), Mercury NZ (-1.6%), Mainfreight (-1.5%), and a2 Milk (-1.5%).