FX.co ★ New Zealand Stocks Under Pressure After Wall Street Rout

On Tuesday morning, the New Zealand stock market witnessed a significant decline, with shares dropping 450 points or 2.5% to reach 17,808. This downturn followed Monday's sell-off on Wall Street, largely driven by escalating uncertainties surrounding tariffs and President Trump’s efforts to possibly remove Fed Chair Powell. Investor concerns were heightened after recent data showed that New Zealand's annual inflation rate climbed to 2.5% in the first quarter of 2025, marking a three-quarter high and surpassing expectations of 2.3%. The market dipped to the lowest level in two weeks, impacted mainly by downturns in sectors such as non-energy minerals, transport, and producer manufacturing. However, further declines were mitigated by March's trade data, which revealed a robust 19% year-on-year increase in New Zealand’s exports, while imports rose by a comparatively modest 12%. These figures resulted in a trade surplus of $970 million, more than doubling the $476 million recorded in the same month the previous year. Among the stocks experiencing declines were Freightways Group Ltd., which fell 1.7%, AFT Pharmaceuticals, down 1.5%, and Meridian Energy Ltd., which decreased by 1.2%.