On Monday, New Zealand shares saw a decline in value at the close of trading, influenced by the release of US May non-farm payroll data which may impact future rate cuts. The S&P/NZX 50 Index dropped by 0.58% or 68.99 points to finish at 11,787.57. The US non-farm payroll data released last Friday revealed that more jobs were created than expected in May, leading to doubts about potential rate cuts by the US Federal Reserve.
According to Reuters, ING’s regional head of research for Asia Pacific, Rob Carnell, expressed skepticism about the Fed’s previous prediction of three rate cuts this year. Many Fed officials are now discussing the possibility of just one cut. Carnell suggested that while a reduction from three to two rate cuts is the most likely scenario, it is also possible that there may only be one cut.
On the local front, Stats NZ reported a modest increase of 0.3% in filled jobs during the March quarter, compared to December 2023. The total number of filled jobs reached 2.3 million, while total gross earnings in the March quarter rose by 8.6% to NZ$174 billion.
In corporate news, Being AI (BAI) acquired a 50% equity share in Melbourne-based technology company TymeStack for AU$1.5 million in cash and services to further its investment in artificial intelligence. Meanwhile, Seeka (SEK) reported an increase in the number of class 1 kiwifruit trays packed during the 2024 harvest season, marking a significant improvement from the previous two years. The company is expected to provide fiscal year guidance later in the year.