27.01.202623:16:25UTC+00NZ Stocks Inch Lower Ahead of Fed Decision, Domestic Data

On Wednesday morning, the NZX 50 witnessed a slight decline of 18 points, or 0.1%, settling at 13,492. This downturn reversed the gains achieved the day before, as investors became cautious ahead of the anticipated U.S. Federal Reserve's decision on Thursday. It is widely expected that the Fed will maintain existing interest rates after a series of three consecutive cuts. However, apprehension about the independence of the central bank persists, especially in light of President Trump's ongoing disagreements with Fed Chair Jerome Powell. Locally, apprehension grew in anticipation of Thursday’s release of December trade data, which is projected to exhibit a modest balance, as well as the forthcoming January business and consumer confidence figures.

In China, attention will focus on January's PMI data following robust readings in manufacturing and services for December. Within the NZX 50, declines in the consumer durables, process industries, and energy minerals sectors contributed to the overall dip. Nevertheless, these losses were partially mitigated by gains in the technology services and financial sectors. Among the noteworthy declining stocks were Tourism Holdings, which fell by 1.9%, A2 Milk down by 1.8%, T&G Global slipping 1.7%, and Briscoe Group decreasing by 1.0%.