FX.co ★ New Zealand Shares Trade Flat in Morning Session

On Tuesday morning, the NZX 50 hovered around the 13,584 mark with minimal movement. Gains in the materials and consumer staples sectors managed to counteract declines seen in the communication services and real estate sectors. Traders exercised caution amid a backdrop of escalating global trade tensions, particularly following US President Trump's announcement of increasing tariffs on several European nations starting February 1, which nudged investors towards safer investments. This caution was further fueled by anticipation of China's decision on interest rates expected today. In the domestic sphere, attention is on the forthcoming Q4 inflation data, which is anticipated to influence the Reserve Bank of New Zealand's monetary policy. Additionally, Prime Minister Christopher Luxon is set to announce the election date on Wednesday, which is also being closely watched. From a data perspective, New Zealand's private sector has returned to expansion, primarily driven by an increase in new orders. Noteworthy market movements included a 2.6% rise for Fletcher Building and a 1.9% gain for A2 Milk, whereas Freightways Group and ANZ Group experienced declines of 0.8% and 0.5%, respectively.