Rates Angst Makes New Zealand Stocks a Laggard Ahead of Election

The country’s equity benchmark has slumped heading into the Oct. 14 vote as high interest rates and China’s slowdown damp its outlook. The S&P/NZX 50 Gross Index has fallen 6.2% this quarter, on track for the second-biggest drop among major indexes in the region, according to data compiled by Bloomberg.

As households reel from a cost-of-living crisis and a real estate slump, the main opposition National Party claims increased government spending from the ruling Labour Party has stoked inflation and driven up interest rates. Labour is trailing in opinion polls ahead of the vote.China’s economic downturn has also curbed demand for commodities such as meat and milk, hampering the stock market’s consumer sector.

The commodity’s decline will “lead to a continued deterioration in the outlook for the New Zealand economy,” said Hebe Chen, an analyst at IG Markets Ltd. As for the nation’s stocks, consumer shares will continue to crumble, she said.Softer-than-expected forward guidance in last month’s earnings season also positioned the market as a global laggard, according to UBS Group AG.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

European Stocks Slide to Six-Month Low on Interest Rates WorryEuropean equities fell to six-month lows on Wednesday, as conviction grew that central banks were set to keep interest rates high for a prolonged period of time.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »

Contrarian Polish Locker Company Sees Chance in UK Economy AngstThe fallout from Brexit and the UK’s cost of living crisis are fueling growth for InPost SA, the Polish parcel locker operator which nearly collapsed six years ago during its first attempt at expansion into Britain.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »