The NZX 50 dropped 16 points, or 0.1%, to close at 13,635 on Wednesday, reversing its morning strength and posting a third consecutive session of losses, mainly weighed down by declines in consumer staples, communication services, healthcare, and real estate. Rising oil prices amid the escalating conflict in the Middle East continued to pressure sentiment as inflation concerns fueled expectations of further interest rate hikes. Traders also continued to assess a warning from RBNZ Chief Economist Paul Conway that sticky inflation caused by recent Middle East supply shocks could lead to further interest rate hikes. Disappointing data from China, New Zealand's top trading partner, also weighed on sentiment, as China's economy grew at its slowest pace in 3-1/2 years. Among the biggest laggards were A2 Milk (-2.0%), F&C Investment (-1.3%), Mainfreight (-1.1%), Chorus (-1.0%), and Fisher & Paykel (-0.6%).