26.08.202505:57:14UTC+00New Zealand Stocks End Lower

New Zealand’s S&P/NZX 50 index dipped by 0.9% to close at 12,958 on Tuesday, reversing the gains achieved in the previous session. This decline was primarily attributed to waning risk sentiment amid escalating trade tensions and prevailing uncertainties. U.S. President Trump has intensified economic anxieties by threatening to impose hefty tariffs on China if it fails to supply rare-earth magnets, highlighting potential adverse effects on New Zealand’s economy, known for its significant trade exposure. Meanwhile, apprehensions regarding the independence of the Federal Reserve further strained market sentiment, overshadowing an interest rate update perceived as dovish. This concern was exacerbated by Trump's removal of a Federal Reserve governor over alleged misconduct. However, losses were somewhat offset by the Reserve Bank of New Zealand's continued dovish stance following last week's rate cut, although Prime Minister Luxon criticized the bank for not implementing more aggressive measures. Within the stock market, notable declines were observed among leading companies, including Meridian Energy (-3.5%), T&G Global (-3.4%), Genesis (-3.3%), Gentrack (-2.6%), Spark NZ (-2.2%), and Serko (-2%).