The NZX 50 fell 28 points, or 0.2%, to 13,656 in Thursday morning trade, extending the previous session’s losses and hitting its lowest level since September 16. The move followed an overnight sell-off on Wall Street, driven by a rise in US Treasury yields.
Weakness in the materials, utilities, financials, and technology sectors led the decline, though gains in real estate helped limit the downside. Market caution intensified after minutes from the latest FOMC meeting indicated the Federal Reserve is likely to raise interest rates again this year. Investors also monitored the escalating conflict in the Middle East and its potential impact on oil prices and inflation.
Last month, the Reserve Bank of New Zealand lifted its cash rate by 25 basis points to 2.75%, marking a second consecutive increase as it seeks to return inflation to the 2% midpoint of its target band.
Early decliners included Vulcan Steel (-1.1%), Westpac Banking Corp. (-0.8%), Sanford (-0.8%), Briscoe Group (-0.7%), Freightways Group (-0.6%), Infratil (-0.6%), Meridian Energy (-0.6%), and ANZ Group (-0.4%).