FX.co ★ NZX 50 Erases Gains at Finish, Down 0.9%

New Zealand shares fell 123 points, or 0.9%, to close at 13,738 on Wednesday, erasing early gains and posting a second consecutive decline. The benchmark index slipped to its lowest level since August 3, following overnight losses on Wall Street, as rising oil prices and uncertainty surrounding the reopening of the Strait of Hormuz weighed on sentiment. Caution also dominated trading ahead of the release of US inflation figures, which investors are watching closely for signals on the Federal Reserve’s next monetary policy move. Locally, markets digested comments from Prime Minister Christopher Luxon after he survived a second confidence vote, in which he emphasized the importance of defeating the Labour-led opposition. Sector-wise, materials, industrials, and financials exerted the most pressure on the index. Among the weakest performers were Mainfreight (-3.7%), Colonial Motor (-1.7%), Westpac Banking Corp. (-1.6%), ANZ Group (-1.3%), F&C Investment (-1.3%), and Infratil (-1.2%).