New Zealand’s benchmark S&P/NZX 50 closed 0.1% lower at 12,627 on Wednesday, marking its second consecutive day of losses as investor sentiment remained cautious amid escalating tensions in the Middle East. The conflict between Israel and Iran has entered its sixth day, with both sides continuing relentless strikes despite a call from US President Donald Trump for Tehran’s unconditional surrender.
Meanwhile, traders awaited the US Federal Reserve’s policy announcement later in the day. While no rate change is expected, investors are looking for guidance on the timing and extent of future rate cuts. At home, attention is turning to New Zealand’s Q1 GDP report, due on Thursday, with analysts forecasting the economy to expand by 0.7% quarter-on-quarter, while shrink by 0.8% on an annual basis. On the corporate front, utility stocks were the main drag on the index, with heavyweights Meridian Energy (-2.1%), Mercury NZ (-1.7%), and Contact Energy (-1.2%) posting notable declines.
