ZB

NZ stocks soften after Wall Street rout

Author
NZ Herald ,
Publish Date
Fri, 6 May 2022, 1:48pm
(Photo / File)
(Photo / File)

NZ stocks soften after Wall Street rout

Author
NZ Herald ,
Publish Date
Fri, 6 May 2022, 1:48pm

New Zealand share prices were weaker in morning trading but the response to Wall Street's dramatic fall was muted.

By 11.45am the benchmark S&P/NZX50 index was down 152 points or 1.3 per cent at 11,595.

In the US, the fallout from the US Federal Reserve's 50 basis point rate hike - the biggest increase since 2000 - continued.

After an initial post-rate hike rally, US stocks were in retreat as investors came to terms with the likelihood that more big rate hikes from the Fed will follow.

America's technology-heavy Nasdaq posted its biggest one-day decline since June 2020 with a 5 per cent fall, while the blue-chip S&P 500 index dropped by 3.5 per cent.

Hamilton Hindin Greene director Grant Williamson said it had been a broad-based sell-off on the local market.

Among the leaders, only Port of Tauranga was showing signs of strength, with a 4 cent gain to $6.32.

"The blue chip stocks are certainly under a bit of pressure," he said.

"Really the market is waiting to get some sort of direction from Australia, which is not likely to be too positive," he said.

The local market gained by 0.6 per cent on Thursday.

Williamson said trade in the US had been extremely volatile.

"The New Zealand market is not seeing the same degree of volatility."