The NZX 50 fell 26 points, or 0.2%, to 13,801 in Tuesday morning trade, wiping out gains from the previous session. Losses were broad-based, led by industrials, communication services, utilities, technology, and financials. The move followed an overnight decline in the Nasdaq, driven largely by weakness in US tech stocks.
Rising oil prices added to risk aversion, stoking concerns about persistent inflation and the prospect of further interest rate hikes. Investors also turned cautious ahead of key domestic data releases later this week, including New Zealand’s food inflation figures and the business PMI.
Globally, traders were focused on upcoming US inflation data for fresh guidance on the Federal Reserve’s next interest rate decision, as well as China’s September CPI, PPI, and trade numbers, with sentiment already fragile amid soft domestic demand in China and higher energy costs.
Early notable decliners on the NZX 50 included Freightways Group (-2.2%), AFT Pharmaceuticals (-2.0%), Auckland International Airport (-1.4%), Skellerup Holdings (-1.3%), Mainfreight (-1.0%), Chorus (-1.0%), and Infratil (-0.9%).