New Zealand shares hit over a week low; Australia closed

Fisher & Paykel Healthcare

26/01/2025 22:45

Jan 27 (Reuters) - New Zealand shares extended declines
on Monday to hit their lowest level in over a week while
investors took a cautious stance ahead of the crucial U.S.
Federal Reserve meeting, due later in the week.
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  fell 0.3%
to 12,986.16 points as of 2208 GMT, hitting its lowest level
since Jan. 16. 
    The index is also on track to log its second consecutive
session of losses.
    Markets in Australia were closed for a public holiday. The
S&P/ASX 200 index  .AXJO  ended 0.4% higher on Friday. 
    On Friday, the U.S. Dow Jones Industrial Average  .DJI  fell
0.32%. The S&P 500  .SPX  lost 0.29% while Nasdaq  .IXIC  lost
0.50%.
    Market participants now await the Fed's rate decision,
expected on Wednesday, with traders betting that the world's
most influential central bank would stand pat at its Jan. 28-29
meeting. 
    Investors worry that U.S. President Donald Trump's proposed
tariffs could exacerbate inflationary pressures and slow Fed
rate cuts, after he referred to trade policy multiple times this
week without providing concrete details of his plans.  .N 
    A slower rate cut by the Fed would add pressure on other
central banks, including the Reserve Bank of New Zealand which
has cut its official cash rate by 125 basis points since August.
        Last week, data showed inflation was within the central
bank's target range in the fourth quarter, keeping the door ajar
for further rate cuts. 
    On the bourse, Air New Zealand  AIR.NZ  gained 0.8% while A2
Milk  ATM.NZ  shed 0.5%. 
    Power company Meridian Energy  MEL.NZ  fell 0.5% and Fisher
& Paykel Healthcare  FPH.NZ  declined 1.3%.
                
   

 (Reporting by Rajasik Mukherjee in Bengaluru; editing by Diane
Craft)
 ((mailto:Rajasik.Mukherjee@thomsonreuters.com))