FX.co ★ New Zealand Stocks Slide to Over 3-Week Low

New Zealand's benchmark index, the S&P/NZX 50, experienced a significant drop of 1.75%, closing at 12,362 on Wednesday, marking its lowest point in over three weeks. Despite this downturn, investor response was muted towards the Reserve Bank of New Zealand's recent decision to reduce the official cash rate by 25 basis points to 3.25%, a level not seen since September 2022. This monetary policy adjustment was intended to rejuvenate an underperforming economy and shield it from the adverse effects of global trade disruptions. Concurrently, the labor market displayed further signs of weakness, with a decrease of 2,246 jobs in April, reducing the total to 2.35 million filled positions. In terms of corporate performance, the index was heavily impacted by substantial losses among major large-cap stocks, including Fisher & Paykel, which fell by 4.45%, Infratil by 5.9%, Meridian Energy by 3.3%, and both Auckland International Airport and Mercury NZ each dropping by 1.6%.