“The big news of the day was the unemployment print. It was in line with expectations, but, notwithstanding, unemployment at an eight-year high is not ideal,” Smith said.
“The rate of youth unemployment is perhaps the biggest concern, especially considering New Zealand’s ongoing brain drain.”
The unemployment rate hit 5.3% in the September 2025 quarter, according to figures released by Stats NZ today. That is the highest rate since December 2016.
“There’s been some positive data this week on housing consents, which is encouraging, although the last few dairy auctions have been a bit weak. Consumer confidence and business outlook have also lifted, but from a very low base.
“The Reserve Bank has a single mandate of price stability, but it will be aware of what the labour market’s doing, of how weak it is and how that rolls into the broader economy.”
On the main board, SkyCity Entertainment Group traded in high volume with 8.4 million shares changing hands on turnover worth $6.2m, with its share price lifting 0.68% to 74c.
Yesterday, Fletcher Building handed over the long-awaited landmark New Zealand International Convention Centre to SkyCity.
Gentailers Meridian Energy, Contact Energy and Mercury Energy all had their share prices fall.
Meridian was down 2.65% or 16c to $5.87, Contact was down 0.31% or 3c to $9.50 and Mercury was down 0.15% or 1c to $6.58.
Elsewhere, Air New Zealand’s share price rose 1.67% or 1c to 61c after 5.8 million shares changed hands on turnover worth $3.5m.
Infratil also rose late in the session, up 0.81% or 10c to $12.40.
Tech companies led a sharp sell-off across Asia on Wednesday as investors are increasingly worried about an AI bubble after a rally this year where valuations hit record highs.
Global markets have soared this year as a flood of cash piled into companies linked to artificial intelligence, including US titans Nvidia, Amazon and Apple as well as Asian firms Samsung and Alibaba.
But despite strong earnings releases in recent quarters, traders have started questioning the wisdom of chasing ever-higher prices, with cash mostly funnelled into a handful of big-name companies.
The gains have also been helped by an easing of US trade tensions and expectations the Federal Reserve will continue to cut interest rates into the new year.
But last week’s warning from the US central bank that another reduction in December was not a foregone conclusion jolted sentiment.
After an uncertain start to the week on Monday, Wall Street tumbled on Tuesday, with the tech-rich Nasdaq down more than 2% and the S&P 500 off more than 1%.
– Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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