NZX50 dips amid heightened US-EU tensions

A late flurry for heavyweights Meridian Energy and Auckland International Airport failed to drag New Zealand’s S&P/NZX 50 index into positive territory, with the benchmark index falling for a second day with investors still on edge about the deepening rift between the US and Europe after President Donald Trump upped the ante over the future of Greenland with his weekend tariff threat.

Investor sentiment remained weak across Asia as US markets were closed for the Martin Luther King Jr Day public holiday, with Australia’s resources heavy market on the red side of the ledger and Japan’s Nikkei sliding after prime minister Sanae Takaichi confirmed speculation she will dissolve parliament and hold a snap election early next month.

Meanwhile, Fletcher Building rallied after the building materials firm agreed to sell its major construction arm to French giant Vinci for $315.6 million.

And the kiwi dollar rose above 58 US cents for the first time this year as the BNZ-BusinessNZ performance of services index showed activity in the services sector expanded for the first time in almost two years.