OPEC agreed to a small oil production cut by 100,000 barrels a day – amounting to only 0.1 per cent of global demand for October – to boost prices that have slid on fears of an economic slowdown.
The Reserve Bank of Australia increased its cash rate, as expected, by 50 basis points to 2.35 per cent – its fifth interest rate rise in five months and the highest level since December 2014.
As inflation nears 10 per cent on the other side of the world, the European Central Bank is expected to follow with a 75 basis points hike on Friday morning (NZ time). And US Federal Reserve chair Jerome Powell is making a further speech by week's end.
Mark Lister, head of personal wealth research with Craigs Investment Partners, said "our market has been a stand-out given the weakness in Europe and United States – and it's come on the back of the strong reporting season."
He said the latest Australian interest rate rise shouldn't have much effect on the local market. "There may be a bit of movement in the currency but we are well ahead of them in terms of monetary policy tightening.
"We started in October last year and the Australians only woke up early this year. They have some catch-up and a bit more pain to come."
The S&P/ASX 200 Index was down 0.37 per cent to 6826.8 points at 6pm NZ time.
ANZ Research believes inflation in New Zealand has peaked at 7.3 per cent mainly because of the fall in oil prices, but the Reserve Bank will need to lift the official cash rate (OCR) to 4 per cent by the end of the year and keep it there for several years to bring inflation back to 2 per cent.
The OCR is presently 2.5 per cent. United States inflation is expected to fall to 8.9 per cent from 9.1 per cent when the latest consumer price index number is released next week.
"Inflation risks are firmly to the upside," said ANZ Research. "Global inflation risks abound, with extremely tight labour markets, climate change, geopolitical tensions, energy shortages and trade disruption all having the potential to generate a sustained period of high global inflation going forward."
At home, Fisher and Paykel Healthcare fell 45c or 2.33 per cent to $18.90 – going under its previous low of $19.45 on June 16.
Fisher and Paykel recently downgraded its operating revenue for the first half of the 2023 financial year to about $670m compared with $900m in the previous corresponding period.
Contact Energy was up 7c to $8.09; Genesis increased 2.5c to $2.96; Ryman Healthcare gained 12c to $9; Summerset Group added 8c to $10.98; apple exporter Scales Corporation rose 22c or 4.81 per cent to $4.769; and oil importer Channel Infrastructure was up 3c or 2.19 per cent to $1.40.
The port companies were mixed. Marsden Maritime Holdings increased 10c to $6.10; while Port of Tauranga was down 5c to $6.63; Napier Port decreased 6c or 2 per cent to $2.94; and South Port declined 12c to $8.60.
Amongst the property companies Argosy was down 3c or 2.27 per cent to $1.29; Vital Healthcare decreased 5.5c or 2 per cent to $2.69; Stride gained 3c to $1.79; and Kiwi Property increased 1.5c to $1.03 after making an investor presentation.
Other gainers were Colonial Motor, up 20c or 2 per cent to $10.20; developer Winton Land adding 10c or 3.64 per cent to $2.85; AFT Pharmaceuticals increasing 5c to $3.55; and PaySauce up 2c or 7.55 per cent to 28.5.
Kiwifruit grower Seeka shed 8c or 2.05 per cent to $3.82; Hallenstein Glasson declined 10c or 1.89 per cent to $5.20; and Sky Network Television decreased 5c or 1.99 per cent to $2.46.
Other decliners were Eroad, shedding 4c or 2.7 per cent to $1.44; Michael Hill International losing 5c or 3.79 per cent to $1.27; My Food Bag down 3c or 4.29 per cent to 67c; and Scott Technology decreasing 7c or 2.43 per cent to $2.81.
