FX.co ★ NZX 50 Ends Nearly Flat Ahead of Inflation Data

The NZX 50 ended Monday’s session virtually unchanged at around 13,693, pausing after gains in the previous trading day. Strength in consumer staples, communication services, and real estate largely offset weakness in healthcare, financials, and technology stocks.

Market sentiment was cautious ahead of Tuesday’s release of Q2 inflation data, with traders wary amid elevated oil prices. Concerns over persistently high energy costs were reinforced by recent US strikes on Iran, which have heightened inflation risks and strengthened expectations of additional interest rate hikes. Supporting this view, RBNZ Chief Economist Paul Conway has recently cautioned that stubbornly high inflation could necessitate further tightening.

On the data front, New Zealand’s trade surplus narrowed sharply to NZD 0.02 billion in June from NZD 0.2 billion a year earlier, as export growth lagged behind the rise in imports.

In corporate moves, A2 Milk gained 2.4%, Auckland International Airport added 1.3%, and AFT Pharmaceuticals rose 0.5%. In contrast, Ebos Group slipped 0.8%, ANZ Group declined 0.7%, and Fisher & Paykel eased 0.6%.