17.02.202604:22:37UTC+00Shares in New Zealand Close 0.7% Lower

The NZX 50 fell 86 points, or 0.7%, to close at 13,032 on Tuesday, marking a third consecutive decline and its lowest finish in more than four months. Sentiment was hit by a steep drop in U.S. futures as Wall Street prepared to reopen after Monday’s holiday, with lingering concerns over the AI sector adding to the caution.

Traders remained on edge ahead of Wednesday’s RBNZ policy decision, where the cash rate is widely expected to be left unchanged at 2.25%, although expectations are growing for potential hikes later in the year. On the data front, New Zealand’s food inflation accelerated to 4.6% in January from an eight-month low of 4% in December, the first increase since October.

Sentiment was further dampened by severe weather, as heavy rain and strong winds disrupted transport and caused power outages across the North Island. Sector-wise, declines in non-energy minerals, logistics, manufacturing, and healthcare outweighed gains in technology services and consumer durables. Scott Tech (-4.3%) led the losses, followed by Contact Energy (-3.9%), Summerset (-2.7%), Tourism Holdings (-2.1%), and Fisher & Paykel Healthcare (-2.0%).