FX.co ★ New Zealand Stocks Edge Up on Trade Optimism

New Zealand's leading index, the S&P/NZX 50, saw a modest increase of 0.1% on Thursday, closing at 12,805 and halting a two-day decline. This uptick was fueled by positive sentiment surrounding advancements in trade discussions between the United States and its major partners. Reports suggest that the EU and the US are nearing a deal to impose a 15% tariff on most goods imported from the bloc, akin to a recent agreement with Japan. These developments have rekindled optimism for potential future trade agreements and alleviated worries about the broader consequences of US tariffs. Domestically, Reserve Bank of New Zealand's Chief Economist, Paul Conway, noted that the central bank is ready to further lower interest rates if inflationary pressures decrease as expected. He also cautioned that US tariffs are anticipated to negatively affect economic growth and inflation. In terms of corporate performance, prominent stocks such as the Ebos Group, which rose by 2.5%, and a2 Milk, up by 1.4%, were among the leading gainers.