Equity rally stalls as caution returns

The S&P/NZX 50 Index fell 56.88 points, or 0.5 percent, to 12,486.73. Within the index, 24 stocks fell, 16 rose and 10 were unchanged. Turnover was $164.5 million.

A return to caution in global markets ended the NZX 50’s near-record run of 11 days of consecutive gains as wary investors sold down positions in some stocks.

A new covid outbreak in Europe is weighing down sentiment, but the catalyst for selling was the US treasury secretary saying fiscal stimulus is unlikely before the November election.

This is despite both political parties, the US president, and the International Monetary Fund, all calling for more fiscal stimulus.