New Zealand’s main stock index, the S&P/NZX 50, fell by 1.2% on Thursday to close at 13,054. This decline pulled the index from its highest point in over three years, spreading losses across many sectors.
The drop mirrored losses on Wall Street, where investors grew worried about the future of U.S. interest rates after strong inflation data was released. This cautious mood affected markets worldwide, including New Zealand’s.
At home, the Reserve Bank of New Zealand adjusted interest rates for the third time in four months, indicating that more significant cuts could happen if the economy continues as expected.
In other news, business confidence in New Zealand stayed close to a ten-year high in November, showing that companies remain optimistic despite recent market shifts.
Ryman Healthcare’s shares fell by 6.4% on the company front after the firm lowered its cash flow forecasts due to tough economic conditions. Leading company Fisher & Paykel also saw a 1.5% drop in its share price after its first-half net profit didn’t meet the market’s expectations.