16.12.202522:58:34UTC+00New Zealand Equities Retreat as Fiscal Update Weighs

The NZX 50 index saw a decline of 52 points, or 0.4%, settling at 13,372 in the early trading hours of Wednesday. This drop comes after four consecutive sessions of gains, following Wall Street's largely negative closing on Tuesday due to delayed U.S. employment data underscoring weaknesses in the labor market. Additionally, New Zealand's half-year fiscal forecast suggests that a budget surplus may not be achievable until 2030, as stagnant economic growth diminishes the effects of spending constraints. Despite these setbacks, losses were mitigated by Central Bank Governor Anna Breman’s reassurance that the official cash rate will remain low through the upcoming year. This stance challenges market expectations of two rate hikes, implying stability at 2.25% until 2026. On the economic data front, consumer sentiment showed improvement in the fourth quarter of 2025, reaching its highest level in a year driven by easing interest rates and seasonal demand increases. Sector-wise, performance was broadly negative, with commercial services, retail trade, and consumer non-durables being the hardest hit. Among the notable companies experiencing declines were Third Age Health Services (-2.8%), Ryman Healthcare (-2.0%), Tourism Holdings (-1.7%), and Serko Ltd. (-1.0%).