11.09.202522:55:15UTC+00New Zealand Stocks Head for Second Week of Gains

On Friday morning, the NZX 50 experienced a rise of 57 points, or 0.4%, reaching 13,286. This uptick effectively reversed the losses from the previous session, as Wall Street's S&P 500 hit record highs for the third consecutive day on Thursday. This rally was fueled by U.S. CPI data that met expectations and indications of a weakening labor market, bolstering predictions of a forthcoming Federal Reserve rate cut next week. For the week, the index is poised for a second consecutive increase, currently up approximately 0.5%. This growth is largely driven by optimism surrounding potential easing by the Reserve Bank of New Zealand (RBNZ), following Governor Christian Hawkesby’s hint that the official cash rate might drop by another half-point by year-end. However, further gains are restrained due to new data indicating a contraction in New Zealand's manufacturing sector in August, following a brief expansion in July. Additionally, there is rising caution ahead of the forthcoming food inflation report, which follows July's record-high reading for 2023. In terms of sectors, notable performance was seen in producer manufacturing, energy minerals, and healthcare. Among the standout performers were Scott Tech, which rose by 3.6%, T&G Global with a 2.0% increase, Skellerup advancing by 1.8%, and Channel Infrastructure climbing 1.3%.