NZX Steady as Geopolitics Weigh

New Zealand's stock market remained steady despite escalating tensions in the Middle East. The NZX 50 index closed at 13,819.43, showing little change from previous days.

The calm on the Wellington exchange belied a risk-off mood across Asia, as investors grew cautious about the potential impact of US-Iran conflict on global trade and energy costs.

ANZ bank upgraded its forecast for New Zealand's economic growth to 0.1% in the second quarter, a slight improvement from previous expectations. However, the more significant development came from Reserve Bank of New Zealand Assistant Governor Karen Silk, who pointed to the growing importance of 'repo' markets.

Silk highlighted how short-term loans where government bonds are used as collateral were increasingly setting interest rates. This could have significant implications for central banks and their policy decisions, as they seek to steer market rates through these operations.