New Zealand shares fell 66 points, or 0.5%, to 13,851 in early trading on Tuesday, snapping the gains made in the previous session. The move followed an overnight decline on Wall Street, as rising oil prices stoked inflation fears amid mounting tensions in the Middle East.
Investor sentiment was also subdued ahead of this week’s RBNZ monetary policy decision, with markets widely expecting a 25 bps rate hike, following an increase in May. Traders continued to digest the government’s move to postpone fuel excise increases from January 1, 2027, a decision announced in the lead-up to the general election scheduled for November 2026.
The downside was limited by Monday’s data showing that business confidence in August, while softer than July’s five-month high, remained at historically elevated levels. Sector-wise, industrials, consumer staples, and healthcare exerted the most pressure on the index. Notable decliners included Auckland International Airport (-2.2%), Ryman Healthcare (-1.4%), Meridian Energy (-1.3%), and A2 Milk (-1.1%).