FX.co ★ NZX 50 Flat After Inflation Data

The NZX 50 was little changed around 13,697 in Tuesday morning trade, holding broadly steady for a second consecutive session. Gains in healthcare, technology, and financial stocks offset weakness in communication services, industrials, and consumer staples.

Investors weighed fresh data showing that inflation accelerated in Q2 to its highest level since Q4 2023 and considered the implications for the Reserve Bank of New Zealand’s upcoming policy decision, following a 25-basis-point rate hike earlier this month. Sentiment was also cautious amid persistently elevated oil prices driven by escalating tensions in the Middle East, with renewed inflation worries reinforcing expectations of additional rate increases. RBNZ Chief Economist Paul Conway recently cautioned that stubborn inflation could necessitate further tightening.

Among individual movers, Ebos Group advanced 0.6%, Fisher & Paykel Healthcare added 0.8%, and Mercury NZ rose 0.6%. In contrast, Chorus fell 2.3%, Colonial Motor Company declined 1.4%, and Auckland International Airport slipped 1.3%.