The NZX 50 was almost flat, trading around 12,958 in early deals on Tuesday, after hitting its highest level since February the day before, as gains in communication services and financials offset falls in healthcare and consumer staples. Traders assessed Monday's inflation data, which showed inflation eased quarterly but accelerated to 2.7% annually in Q2, despite being below expectations of 2.8%, and still remaining within the RBNZ's 1–3% target range. Caution was also built amid lingering uncertainty over trade negotiations between the US and its trading partners. However, record highs in the S&P 500 and Nasdaq on Wall Street overnight lifted sentiment. On the negative side, New Zealand's trade surplus narrowed to a 5-month low of NZ$0.1 billion in June, far below expectations of NZ$1 billion. Infratil and Mainfreight rose 0.7% each, while SKT TV surged 4.5% after announcing it agreed to fully acquire TV3 owner Discovery NZ. Gentrack Group fell 1.9% and Fisher & Paykel shrank 0.5%.