FX.co ★ NZX 50 Retreats from Record High After RBNZ Decision

The NZX 50 fell 98 points, or 0.7%, to close at 13,665 on Wednesday, after moving sideways in the previous session. The benchmark pulled back from record highs set over the prior two trading days, following the Reserve Bank of New Zealand’s decision to lift the official cash rate by 25 basis points to 2.5%. It was the central bank’s first rate increase in more than three years and came with guidance pointing to further tightening ahead in order to return inflation to target.

Investors were also focused on the imminent release of the US Federal Reserve’s June meeting minutes for clues on the future path of interest rates. Sentiment was further weighed down by rising oil prices, which intensified inflation worries and reinforced expectations of additional rate hikes.

The broader market mirrored Wall Street’s overnight decline, amid a global sell-off in chipmaking stocks. Sector-wise, healthcare, financials, technology and communication services exerted the most pressure on the index. Among the notable decliners were Ventia Services Group (-2.8%), Fisher & Paykel (-2.6%), Infratil (-2.3%), and Freightways Group (-1.8%).