FX.co ★ New Zealand Stocks Muted in Morning Session

The NZX 50 was little changed around 13,666 in Thursday morning trade, stabilising after a pullback in the previous session. Strength in communication services and materials helped offset weakness in energy and financial stocks.

Investors continued to digest Wednesday’s Reserve Bank of New Zealand decision to lift the official cash rate by 25 basis points to 2.5% and signal further tightening to return inflation to target. Markets also weighed the latest Federal Reserve minutes, which showed policymakers were split on the outlook for interest rates, though a majority judged that some additional policy firming would likely be needed to bring inflation back to the 2% goal.

Sentiment remained cautious as rising oil prices reinforced inflation worries and bolstered expectations of further interest rate hikes. Providing a brighter note, New Zealand’s manufacturing sector posted its strongest expansion since July 2021.

In corporate moves, Chorus gained 1.8% and Summerset Group advanced 1.4%, while AFT Pharmaceuticals and Channel Infrastructure fell 2.1% and 2.2%, respectively.