10.06.202622:51:17UTC+00New Zealand Stocks Drop, Tracking Wall Street Lower

The NZX 50 slipped 45 points, or 0.3%, to 13,208 in Thursday morning trade, giving back gains from the previous two sessions and pulling back from its highest level since May 7, reached on Wednesday. The move tracked an overnight decline on Wall Street, as a renewed flare-up in Middle East tensions pushed oil prices higher. Sentiment was further pressured by US inflation data, which showed consumer prices accelerating in May to their fastest pace in three years, reinforcing expectations that the Federal Reserve will keep interest rates unchanged at its upcoming meeting.

Locally, investors remained cautious ahead of Friday’s release of New Zealand’s May business PMI, after the index posted its slowest expansion in seven months in April. Most sectors traded lower, with financials, healthcare, and utilities under pressure. Early notable decliners included Mainfreight (-1.5%), Fisher & Paykel Healthcare (-0.9%), Freightways Group (-0.8%), ANZ Group (-0.7%), Infratil (-0.5%), and Ebos Group (-0.4%).