- The S&P/NZX 50 gained 1.08% on Wednesday to 11,258.28 points, led by substantial gains in materials and utilities stocks.
- Stocks on Wall Street gained in Tuesday’s session due to positive retail sales data, while the Fed indicated increasing interest rates if required to cool down inflation.
- Oil prices witnessed a rise while oil prices and the cryptocurrency market fell.
The New Zealand share market ended in the green taking cues from Wall Street and easing lockdown curbs in China amid lower COVID-19 cases. However, rising costs of food and fuel and uncertainty over Fed policies continued to raise concerns.
Investors also stayed worried that the RBNZ may increase the OCR by 50bs in each of its upcoming meetings to be held in 2022 with the rate to peak at 3.5% by the end of the year, as stated by Westpac economists.
The benchmark S&P/NZX 50 gained 1.08% on Wednesday to 11,258.28 points, led by substantial gains in materials and utilities stocks.
Top stock Fisher & Paykel Healthcare Limited (NZX:FPH) gained 1.3% to end at NZ$21.05. NZ’s biggest electricity generator Meridian Energy Limited (NZX:MEL) shares rose 4.73% to NZ$4.65 as it released its operating report for April 2022.
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Chatham Rock Phosphate Limited (NZX:CRP) shares gained 9.38% on Wednesday, followed by Bliss Technologies Limited (NZX:BLT) and Steel & Tube Holdings Limited (NZX:STU), with shares rallying to 5.41% and 5.11%, respectively.
EROAD Limited (NZX:ERD) was the biggest loser of the day, with shares falling 6.88% to NZ$2.57. Serko Limited’s (NZX:SKO) shares declined 4.2% to NZ$4.5 as the travel company posted a loss of NZ$36 million in FY22.
Wall Street gains, Asian stocks mixed
Stocks on Wall Street gained in Tuesday’s session due to positive retail sales data, while the Fed indicated increasing interest rates if required to cool down inflation.
The S&P 500 gained 2%, the Dow Jones Industrial Average rose 1.3%, while the NASDAQ Composite ended with a gain of 2.8% in Tuesday’s trading session.
Asian stocks were trading mixed on Wednesday.
At the time of writing, the Shanghai Composite Index lost 0.02%, the Nikkei 225 in Tokyo gained 0.78% and the Hang Seng in Hong Kong sank 0.08%.
Oil prices rose, gold prices down
Oil prices were trading higher on Wednesday in hopes of a demand rebound in China as the country eases its COVID-19 lockdown restrictions gradually. Shanghai had not reported any new COVID-19 cases for 3 days straight outside its quarantine zones till Tuesday.
Brent crude futures were up 0.73% to US$112.75 a barrel at the time of writing, while WTI crude futures gained 1.21% to US$110.96 a barrel.
Gold prices rose on Wednesday due to a weak dollar, making gold more attractive for buyers holding other currencies.
Gold futures fell 0.46% to US$1,810.51, at the time of writing, while spot gold was down 0.17% to US$1,812.07.
Cryptocurrency markets fell
The global crypto market cap has fallen 1.09% over the last day to US$1.29 trillion from US$1.31 trillion recorded a day before. Bitcoin, Cardano, Ethereum, XRP and Solana were trading down between 1-3% in the last 24 hours.