The S&P/NZX 50 index fell 0.3% to close at 12,929 on Tuesday, snapping a four-day gain and retreating from a nearly six-month high, weighed down by losses in communication, non-energy minerals, and consumer durables stocks. Traders also positioned ahead of the Reserve Bank’s monetary policy decision on Wednesday. Markets have priced in a 25bps cut to 3%, bringing the easing cycle to 250bps. Analysts note that policy is near neutral, with earlier cuts still filtering through, but weak growth and spare capacity could justify further easing. Two-year swap rates remain near their lowest levels since early 2022, leaving them vulnerable to any hawkish surprise. On the data front, producer output prices rose 0.6% quarter-on-quarter in Q2, slowing from a 2.1% increase in Q1 and below expectations for a 1% gain. Among communication, non-energy minerals, and consumer durables stocks, top laggards included Spark NZ (-2%), Chorus (-1%), Fletcher (-1%), Sanford (-1.5%), and KMD Brands (-3.9%).