FX.co ★ New Zealand Shares End Slightly Higher

In market developments, New Zealand's S&P/NZX 50 index edged upward by 0.1%, closing at 12,644 on Tuesday. This rise halted a preceding two-day downward trend. The boost was driven by advances in the utilities and communications sectors, which helped counteract declines in healthcare and transportation stocks. Investor sentiment received a lift following the People's Bank of China's decision to reduce key interest rates, a move aimed at reinvigorating China's flagging economy. This is particularly significant for New Zealand due to its strong trade relationship with China. Nonetheless, the slowdown evident in China's retail sales in April has raised alarms about diminishing consumer demand, which could impact New Zealand's export market. Domestically, attention is focused on the upcoming government budget announcement on Thursday, anticipated to include a reduction in baseline spending for 2025. Leading the market gains were Meridian Energy, experiencing a 2.5% increase, and Spark NZ, which surged by 4.1%. Conversely, Fisher & Paykel, Auckland International Airport, and Mainfreight were among the day's notable decliners, with losses of 1.6%, 1.3%, and 1.6%, respectively.