The S&P/NZX 50 Index fell by 0.58% or 68.99 points to end at 11,787.57 on Monday in New Zealand following the release of the US May non-farm payroll data. The decline was caused by reduced expectations for rate cuts from the US Federal Reserve due to the revelation that the US had created more jobs than expected in May.
On the home front, Stats NZ reported that filled jobs in New Zealand had increased by 0.3% in the March quarter, seasonally adjusted, compared to the previous quarter. This resulted in a total of 2.3 million filled jobs and a significant jump of 8.6% in total gross earnings for the quarter to NZ$174 billion.
ING’s regional head of research from Asia Pacific, Rob Carnell, stated that it might be challenging for the Fed to stick to its prediction of three rate cuts this year due to some Fed speakers discussing the possibility of just one cut or even just one reduction from three cuts to two or potentially even just one cut.
In corporate news, Being AI BAI acquired a 50% equity share in Melbourne-based technology company TymeStack for AU$1.5 million as part of its efforts to invest in artificial intelligence and Seeka SEK reported packing 43 million trays of class 1 kiwifruit during the 2024 harvest season, a significant increase from the previous year by about 44%.
