NZ sharemarket dips on low volumes as Aust market moves up on inflation news

The S&P/NZX 50 Index fell at the opening and never recovered, giving up two-thirds of its gain the day before and closing at 11,980.41 – down 75.74 points or 0.63% after increasing 0.92% on Monday.

There were 56 gainers and 77 decliners over the whole market, with 21.95 million shares worth $64.76m changing hands.

The Australian Reserve Bank held its rate at 4.1% (NZ’s is 5.5%) and said inflation is declining but is still too high (at 6%), household consumption growth is weak, and conditions in the labour market remain very tight, although they have eased a little.

“Returning inflation to the target of 2-3% within a reasonable timeframe remains the priority. The outlook for household consumption is an ongoing source of uncertainty.