The benchmark S&P/NZX 50 index in New Zealand saw a decline of 0.2%, closing at 12,597 on Monday, following two consecutive days of growth. Investors are closely monitoring the upcoming policy decision from the Reserve Bank of New Zealand, which is expected to announce a 50 basis-point reduction in its key interest rate, lowering it to 4.75%. This potential cut would be a continuation of the unexpected 25-basis-point rate reduction made in August, marking the first decrease in over four years.
In the United States, a stronger-than-anticipated jobs rort has led traders to adjust their expectations regarding a significant rate cut from the Federal Reserve next month. Among the prominent players in the index, notable declines were recorded for Fisher & Paykel at -3.7%, Mainfreight at -1.5%, Contact Energy at -0.85%, and Spark NZ at -2.2%.
Since the start of 2024, the NZX 50 has surged by 826 points, reflecting a robust increase of 7.02%. Projections indicate that the New Zealand Stock Market is set to trade at 12,249.77 points by the conclusion of this quarter, based on insights from global macro models and analyst expectations. Looking into the future, estimations suggest it may reach 11,621.45 points in twelve months.