NZ Stocks Stabilise after Initial Fall

08 August 2011 - Which Way to Pay

Email Article Print Article

NZ Stocks Stabilise after Initial Fall

The New Zealand stock exchange closed with a decrease in shares by 2.78% today which was up earlier sharp falls this morning. The instability in the market reflects Standard & Poor's downgrade of the U.S. sovereign credit rating from top-notch AAA to AA+. This comes as yet another blow to the struggling U.S. economy and heightens fears that the world's number one economy may be headed back into recession.

In reaction to the US economy problems, Grant Williamson, director at Hamilton, Hindin, Greene commented: "New Zealand, being the first market to open post the S&P announcement, did appear to over react when we were down some 3.5%''.

The NZX-50 was down by greater than 3% after the first hour of trading hitting a record low in the last 11 months. However, no further falls meant that trading closed with the NZX-50 index down by 2.78%.

Similar drops were seen in Asian markets throughout today’s trading. Chinese shares dropped to 4.78% in late morning trade before limiting its losses to 4.00%. In Japan, the benchmark Nikkei was down 2.1% in early afternoon trade, Hong Kong's Hang Seng feel by 4% and South Korea's Kospi slid by3.3%.

Australia's S&P/ASX 200 index dropped 1.8%. Singapore's benchmark tumbled 3.7% and Taiwan's markets were down 2.6%.

The chief economist of West Banking Corp. Bill Evans spoke on the dropping share prices:

"I think it's still a matter of people being cautious given they don't really know how wildly these overseas markets will respond...I would expect people will take the risk off the table at the moment waiting for some more clarity in those two big issues: how will the US respond to the downgrade and will the Europeans settle down these concerns in Europe?'' he said.

Without doubt, the burst in activity in today’s markets underscore how government debt levels in Europe and the US directly impact financial markets. Indeed, heightened concerns now exist regarding how such debt troubles could negatively impact upon the global recovery from the 2007-2009 financial crisis.



Compare Foreign Exchange and Currency >>

Compare Loan and Debt Products >>

Compare Cards Products >>

Compare Money Products >>

Compare Insurance Products >>

We are always looking at simpler ways of controlling our day to day spending , Transaction accounts are the simplest way this can be done .
30 August 2016
Which Way To Pay
As we all want to keep on top of our financial situation , Transaction accounts can do this for you .
Having the stress of money worries hanging over you day in day out is very stressful. Thats why Bad Credit loans could be your answer.
08 August 2015
Which Way To Pay
When it comes to keep being refused by banks and lenders for a solution to clear your debt once and for all . Bad Credit Loans are there to help.
When spending on your reward credit card , many different benefits whilst using this.
14 May 2015
Which Way To Pay
Make sure you get all the rewards you are entitled to with your Rewards Credit Cards.