New Zealand Shares End Lower After Mixed Wall Street Close; Freightways Group to Acquire Victoria-Based Freight Operator

MT Newswires Live12-17

New Zealand shares ended lower on Wednesday after a mixed close on Wall Street's Tuesday trading session following US jobs data.

The S&P/NZX 50 Index fell 0.96% or 129.04 points to close at 13,295.91.

On Tuesday, the Nasdaq Composite finished higher by 0.2%, the S&P 500 closed lower by 0.2% and the Dow Jones fell 0.6%.

US jobs growth rebounded more than expected in November after its sharpest fall in nearly five years in October, but the unemployment rate still climbed to 4.6%, the highest in over four years, according to a Wednesday Reuters report.

The report added that analysts believe the figures were distorted by significant volatility, partly due to the government's record 43-day shutdown.

New Zealand's central bank chief said on Wednesday that the official cash rate is likely to stay low through next year, pushing back against market expectations that price in two rate hikes over the period, according to a Wednesday Reuters report.

In domestic news, a total of 33,974 metric tonnes (MT) of products were sold during the Global Dairy Trade auction held Tuesday, with supply ranging from 33,938 to 40,896 MT, according to data from the trading platform.

Meanwhile, consumer confidence in New Zealand grew 5.6 percentage points in December as a countdown to Christmas intensified a cheery economic outlook, Westpac (NZE:WBC) said.

Also, New Zealand's current account deficit widened to NZ$3.78 billion in the September quarter from NZ$3.63 billion in the June quarter, Stats NZ data showed.

The Reserve Bank of New Zealand has decided to ease common equity requirements across the system by around NZ$5 billion from current levels, effective early next year, to lower overall funding costs for deposit takers.

In corporate news, Freightways Group (NZE:FRW, ASX:FRW) agreed to acquire the business and assets of VT Freight Express (VTFE) for AU$71 million.

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