New Zealand Shares Decline Following Release of US Employment Data; Being AI Invests in Retail Technology Firm — TradingView News

New Zealand shares declined on Monday’s close following the release of the US May non-farm payroll data, which may impact the start of rate cuts.

The S&P/NZX 50 Index fell 0.58% or 68.99 points to close at 11,787.57.

The non-farm payroll data released last Friday showed that the US created more jobs than anticipated in May, dampening hopes for future rate cuts from the US Federal Reserve, Reuters reported.

“It’s going to be very difficult for the Fed to continue predicting three rate cuts this year,” said ING’s regional head of research from Asia Pacific Rob Carnell, as cited in the report.

“Quite a few of the Fed speakers are talking about the possibility of just one (cut). While the most likely outcome is we’ll see the three move to two, it is possible we just get a move to one,” Carnell added.

On the domestic front, Stats NZ reported that New Zealand filled jobs inched up 0.3% in the March quarter, seasonally adjusted, compared with filled jobs in December 2023, with the actual number of filled jobs reaching 2.3 million.

Total gross earnings in the March quarter jumped 8.6% to NZ$174 billion from NZ$160 billion in the March 2023 quarter.

In corporate news, Being AI BAI bought a 50% equity share in Melbourne-based technology company TymeStack for AU$1.5 million in cash and services as part of its push to invest in artificial intelligence. Its shares were down 4% at the close.

Seeka SEK packed 43.0 million trays of class 1 kiwifruit trays during the 2024 harvest season, up 44% from 29.8 million last year and following two years of dismal harvests. The orchard grower and produce packer is expected to release its fiscal year guidance later in the year.