The S&P/NZX 50 index rose 0.6% to 12,971 on Monday, extending gains for a fourth session to close near its highest level since February, driven by expectations of further easing from the RBNZ. Markets are fully pricing in a 25bps cut to 3%, with another move to 2.75% anticipated early next year. However, analysts noted that while policy settings are already near neutral, weak growth and spare capacity may still warrant additional stimulus. Two-year swap rates remain near their lowest since 2022, leaving room for a potential hawkish surprise. In economic news, July’s services sector contraction highlighted ongoing softness in activity. On the corporate front, A2 Milk gained 2.6% after issuing guidance for a 15–16% FY2026 Ebitda margin, excluding Mataura Valley Milk, which Barrenjoey considered stronger than market expectations. Other notable gainers included Eroad (+3.9%), Vector Limited (+3.7%), Gentrack (+2.9%), Infratil (+2.2%), and Mercury NZ (+2.1%).