New Zealand stocks fall 0.5% as oil prices stoke inflation concerns

  • New Zealand stocks fell 66 points in Tuesday morning trading.
  • The index declined 0.5% to 13,851, following overnight Wall Street losses.
  • RBNZ is expected to raise interest rates by 25 basis points this week.

New Zealand’s benchmark index fell 66 points, or 0.5%, to 13,851 in Tuesday morning trading, ending the previous session’s gains and following an overnight decline on Wall Street. Rising oil prices heightened inflation concerns amid escalating Middle East tensions, while traders remained cautious ahead of the RBNZ (Reserve Bank of New Zealand) monetary policy decision this week. Markets expect a 25-basis-point interest-rate increase after the central bank raised rates in May. Investors also continued assessing the government’s decision to delay fuel excise increases from January 1, 2027, ahead of the general election scheduled for November 2026. August business confidence, although down from July’s five-month high, remained historically strong and limited the index’s decline. Industrials, consumer staples and healthcare were the main drags, led by Auckland International Airport, Ryman Healthcare, Meridian Energy and A2 Milk.

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