NZX50 dips as Fed gets investors thinking about rate hikes

New Zealand’s S&P/NZX 50 index was dragged lower by blue chip companies such as Mainfreight, Auckland International Airport and Meridian Energy as the US Federal Reserve’s focus on inflation prompted investors to prepare for rate hikes later this year.

Meanwhile, Statistics New Zealand’s March quarter gross domestic product figures showed the economy started the year in good health, before the Middle East conflict and subsequent oil shock disrupted growth around the world.

Fletcher Building was among the day’s gainers – which outnumbered those on the red side of the ledger – after Forsyth Barr and UBS analysts raised their price target on the materials firm and Jefferies resumed coverage calling it a ‘buy’.

And Japanese-owned meat processor ANZCO has agreed to buy the Greenlea Group for $800 million, with the deal expected to be completed in August.