NZX 50 slides 0.36% as RBNZ’s rate hike looms large

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NZX 50 slides 0.36% as RBNZ’s rate hike looms large

 NZX 50 slides 0.36% as RBNZ’s rate hike looms large
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Highlights

  • The S&P/NZX 50 ended the trading session lower by 0.36% at 11,889.17 on Tuesday
  • Market participants are factoring in the interest rate hike in the RBNZ’s upcoming review.
  • Brent crude futures soared to highs of nearly US$139 per barrel in early March.

The New Zealand stock market slid on Tuesday as market participants factor in the interest rate hike in the RBNZ’s upcoming review to contain soaring inflation. The market also traded lower due to a global equity weakness amid rising bond yields and increased lockdown in China.

RBNZ is likely to raise OCR by 25 or 50bps in its Wednesday’s review amid surging inflation.

The S&P/NZX 50 ended the trading session lower by 0.36% at 11,889.17 on Tuesday. Out of the 11 sector indices, 6 traded in the red, with the heaviest falls seen by consumer staples and IT stocks.

Jewelry retailer Michael Hill International’s shares ended 4.84% higher at NZ$1.3 after the company reported a strong performance in Q3 FY22. Top stock Fisher & Paykel dropped 0.69% to $23, ANZ fell 1.82% to $29.7, and Ryman Healthcare slid 2.67% to $9.1.

Bremworth Limited was the top gainer of the day, trading up 6% at NZ$0.53. In comparison, EROAD Limited’s shares dwindled 10.42% to NZ$3.18 at the end of the market session.

Global stock markets remained weak

Global stock markets slid on Monday with the Dow Jones Industrial Average dropping 1.19%, the S&P 500 losing 1.69% and the NASDAQ Composite falling 2.18% at the end of the trading session. The fall came as market participants turned bearish in a risk-off mood due to increasing Treasury yields and increased odds of higher inflation.

ALSO READ: Wall Street slides as yields climb, tech rout deepens; MSFT, NVDA drop

Hong Kong’s Hang Seng index was up 0.7% while Japan’s Nikkei 225 was down 1.83%.

Oil prices up, gold inches higher

Brent crude futures soared to heights of nearly US$139 per barrel in early March. On Monday, oil prices fell by more than 4% as the release of emergency oil reserves eased supply constraint fears.

ALSO READ: Crude oil rises on OPEC’s warning of tight supplies

At the time of writing, WTI crude was up 1.7% at US$96.05 and Brent crude was trading up by 1.65% at US$100.13.

Gold prices inched higher on Tuesday as investors turn risk averse ahead of the US inflation data. At the time of writing, Spot gold was up 0.31% at 1959.49 per ounce while US gold futures increased 0.8% at 1962.9.

The NZD/USD pair was trading up 0.22% at 0.6839, at the time of writing.

Crypto market down today

The global crypto market cap fell 4.84% to US$1.85 trillion over the last day. Bitcoin, Ether, XRP, Solana and Cardano were trading lower in the range of 14-22% over the last 24 hours. The crypto market was down on tighter monetary policy concerns.

ALSO READ: Seeking Solana (SOL) crypto? Things you must know

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