FX.co ★ New Zealand Stocks Fall on Mideast Tensions

New Zealand's primary index, the S&P/NZX 50, experienced a decline of 0.8%, closing at 12,553 on Friday. This drop marked the end of a three-day upward trend, influenced by increasing tensions in the Middle East which affected overall investor confidence. The escalation occurred as Israel carried out airstrikes on Iran’s nuclear facilities, heightening concerns about a potential regional conflict and reducing global market risk tolerance. Additionally, investors kept a close watch on ongoing trade discussions between the United States and China. Although the two nations have agreed on a framework suggesting the possibility of a future agreement, specifics remain undecided. Domestically, New Zealand's manufacturing sector slipped back into contraction in May after four consecutive months of growth, hindered by sluggish demand, rising production costs, and declining business confidence amid global economic uncertainties. The market saw widespread losses, with significant reductions in shares of companies such as Mainfreight (-2.6%), Mercury NZ (-1.1%), a2 Milk (-1.1%), Spark NZ (-1.5%), and Fletcher Building (-2.4%). Over the week, the NZX 50 saw a marginal decline of 0.1%.