2025.08.1823:12:34UTC+00NZX 50 Retreats from Near 6-Month Peak

The NZX 50 Index dropped by 80 points, or 0.6%, to 12,891 during early trading on Tuesday. This downturn interrupted the upward trend observed over the previous four days and pulled back from Monday's peak, which marked its highest level since February. The slump was predominantly attributed to weakness in the healthcare, energy, and industrial sectors. Market participants exercised caution in anticipation of the Reserve Bank of New Zealand's monetary policy meeting scheduled for Wednesday. The central bank is expected to reduce the interest rate by 25 basis points to 3%, following a pause in July due to a sluggish domestic economy and elevated unemployment rates. Additionally, traders were attentively poised for the interest rate announcement from China, amid persisting weak domestic demand. Prudence was also evident ahead of the Federal Reserve's July meeting minutes release and Fed Chair Powell's forthcoming keynote address at Jackson Hole later this week, events that could influence the central bank's future monetary policy direction. On the economic data front, New Zealand's Producer Price Index (PPI) increased by 0.6% in Q2, which was softer compared to Q1 and fell short of market expectations. Among early decliners were Infratil, down 2.5%, Fisher & Paykel, down 1.8%, and Contact Energy, down 1.4%.