NZ shares follow global sell off
After initially falling 2% the NZX-50 index has pared back some losses as Asian markets suffer.
UPDATE: 1.50pm: New Zealand shares dropped sharply today, following Wall Street’s dive overnight triggered by the Federal Reserves gloomy outlook.After initially falling 2% the NZX-50 pared back some losses to be down 1.3% at 3269 at 1.45pm.
The Australian sharemarket also opened down 2%, although the S&P/ASX 200 index has recovered to be down 1.4% at 3910.Markets plunged after the US Federal Reserve's stark warning about the health of the US economy on Wednesday.
"It looks like we're set for a terrible end to the trading week as fear and panic based selling grip investors," said IG Markets strategist Ben Potter.“With nothing in the way of market moving economic data, markets are going to be at the whim of Asian sentiment.”
South Korea's Kospi plummeted 3.6%, or 64.17 points to hit 1,736.38.
Japanese markets were closed for a public holiday, as they had been on Monday.
UPDATE 1.20pm: The S&P ASX 200 and NZX50 both have recovered somewhat from 2% declines on opening.
The NZSX50 is currently at 3272, down 1.2% on yesterday's close, while the ASX S&P 200 is presently sitting at 1.2% down.
12.15pm: The Australian share market has followed world markets down, dropping more than 2% in early trading.
11:50am: The NZX50's steep decline on opening bottomed out at 2% and recent trading has nudged the index slightly higher to sit at 3255, or 1.7% down on yesterday's close.
Following global market turmoil the NZX50 dropped 58 points, or 1.8%, in the opening minutes of trading to sit at 3254.
The holding power of the New Zealand dollar is now being tested as global stocks plummeted overnight.
The kiwi dollar fell 5% against the greenback overnight to US78c - a six-month low.
The drivers were both local and global with fresh fears of a global recession.
Euro stocks fell 5% and the Dow ended down 3.4% as fears are renewed the US and European economies are falling back into recession.
NBR staff
Fri, 23 Sep 2011
Fri, 23 Sep 2011
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NZ shares follow global sell off
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