The NZX 50 dropped 60 points, or 0.5%, to 13,168 in morning trade on Monday, after being flat in the previous session. This marked the lowest level since September 4, as traders remained cautious ahead of the release of Q2 GDP data later this week. The market expects the country's economy to return to contraction, shrinking by 0.3% (qoq) - in line with the central bank's forecast - after two consecutive quarters of expansion. Caution also prevailed ahead of a slew of data from New Zealand's top trading partner, China, due today, as well as the Fed’s monetary policy decision later this week. On the data front, New Zealand's services sector contracted at the fastest pace in three months, amid sharper declines in sales and new orders. Most sectors traded in the red, led by healthcare, industrials, and financials. Among the biggest laggards were Napier Port Holdings (-1.9%), Fisher & Paykel (-1.8%), ANZ Group (-1.4%), Turners Automotive Group (-1.0%), and Westpac Banking Corp. (-0.7%).