'A dip but not disastrous' as NZ sharemarket responds to Wall Street's meltdown

The NZX closed this evening down just over half a per cent, and brokers described it as a dip but not disastrous following yesterday's meltdown on Wall Street.

1 NEWS was on the trading floor as markets opened this morning and quickly dropped two per cent. 

The waves from Wall Street were felt around the world yesterday, but it was a delayed reaction today on the New Zealand stock market which was closed yesterday for Waitangi Day.

"While we were shut you saw falls of anywhere between three and five or six per cent across a lot of the other big markets. So for us to open, play a bit of catch up, but only be down two per cent that's not bad, we'll take that," said mark Mark Lister of Craigs Investment Partners.

International markets have been readjusting after the Dow dropped dramatically. 

"This morning we've seen a bit of calm emerge in the markets across Asia and the New Zealand market not performing too badly considering how things have been in recent days," Mr Lister said. 

The situation has been volatile for the last few days because better than expected wage growth in the US caught investors by surprise.

Traders had been worried growth would be higher than anticipated, with fears that could lead the Federal Reserve - America's version of the Reserve Bank - to raise interest rates faster than expected, enticing investors away from the stockmarket. 

"We expected a correction in the equity market, which we've seen," said Nigel Brunel, OMF financial markets director.

Of course this affects Kiwis who own shares, but it also matters for anyone who has Kiwisaver or a retirement saving scheme, because these often invest in the stock markets. 

Experts say don't panic. 

"If you look at Kiwisaver, for example, which really is a long term game, they shouldn't be concerned if it falls over a short period of time in the market," Mr Brunel said.

The Finance Minister, Grant Robertson, says New Zealand has rebounded because the economy is in good shape. 

"The economy has that stability in it which means that we've been able to avoid the worst of this," he said. 

In the US, markets rebounded after a rollercoaster day. 

"Even after all of this sell-off that we've seen in recent days, in just the last year stocks are still over the full year, up about 20 per cent," said Rebecca Jarvis, ABC economic correspondent. 

Back in New Zealand it's hoped the volatility has calmed for now. 

The NZX had a delayed reaction to the US fall with the market closed on Waitangi Day. Source: 1 NEWS



New Zealand retains triple A credit rating

The credit agency Moody's has today maintained the government's credit rating and expressed confidence about the future of the economy.

The rating remains at triple A, with the outlook described as stable.

Moody's analyst Matthew Circosta said the international ratings agency expects the coalition government will remain committed to fiscal discipline, with the Budget staying in surplus.

But it says the government has the flexibility to increase spending in areas such as education and housing.

Finance Minister Grant Robertson said the rating was very pleasing.

"What they've said is that the underlying fundamentals of the New Zealand economy are strong, that the approach that the coalition government's taking to being responsible with our budget management.

"But investing in areas like infrastructure and improving social supports are the right thing to do, that we can manage to do that within the finances we've got."

Moody's said the very high strength of New Zealand's institutions was a key factor in underpinning the credit rating.

The assessment comes just days after official figures showed growth in the economy increasing to 1 per cent in the three months to June.

rnz.co.nz

Shot of New Zealand twenty dollars.
New Zealand $20 notes (file picture). Source: istock.com

TODAY'S
TOP STORIES

American tourist dies in skiing accident on Mt Aspiring

An American tourist has died while skiiing on Mt Aspiring this afternoon.

Police say the skiing accident at Mt Aspiring happened at about 1.30pm today.

Two visitors to New Zealand were skiing from the top of Mt Aspiring, downhill toward the Bonar Glacier.

One of the skiers got into difficulty, has fallen on the slope and was fatally injured.

The other skier gave first aid to the injured man, but he unfortunately died at the scene.

The Rescue Coordination Centre were advised of the beacon activation just after 1.30pm today.

Police and Search and Rescue teams have been working to locate the skiers this afternoon.

Emergency services are now at the scene and an investigation is underway.

The victim is a 35-year-old American citizen.

Police are currently in the process of talking to his next of kin.

Mount Aspiring towers over the southern alps in New Zealand. Source: istock.com

TODAY'S
FEATURED STORIES

Man charged with multiple assaults in Invercargill

A 24-year-old man has been arrested in relation to several assaults in Invercargill today.

The man, who has been remanded in custody, is due to appear in Invercargill District Court on Tuesday 2 October.

The man has been charged with wounding with intent to cause grievous bodily harm and assault. Further charges are likely.

Between 1.30 and 2.30am today, the man allegedly assaulted four people at two different properties.

A 17 and 23-year-old man, and a 26-year-old woman sustained minor injuries from the incident at the first property, while a 30-year-old man sustained serious facial injuries at the second location.

Police are not looking for anyone else in relation to either incident.

Police car generic.
Police car generic. Source: 1 NEWS


First images of wreck believed to be Captain Cook's Endeavour revealed

Researchers exploring whether a shipwreck off the coast of Rhode Island could be the vessel that 18th-century explorer Captain James Cook used to sail around the world have released images of the vessel.

The Rhode Island Marine Archaeology Project, which is leading the search effort, and the Australian National Maritime Museum identified the vessel.

It's one of 13 shipwrecks that have been known for years to be in the harbor near Newport, Rhode Island.

Archaeologists were meeting today in Newport to talk about their recent fieldwork.

The Rhode Island Marine Archaeology Project also described the site as promising but said it'll still take a lot more work and money to identify it.

Nearly 250 years ago, Cook ran aground on Australia's Great Barrier Reef during a voyage to the South Pacific.

His ship was the Endeavour, an awkward little vessel that improbably helped him become the first European to chart Australia's east coast.

It was the ship in which the explorer charted New Zealand and Australia between 1769 and 1771.

The Endeavour was also part of the fleet of 13 ships the British scuttled during the Revolutionary War in 1778 to blockade Newport Harbor from the French.

It was listed in the records under a different name, the Lord Sandwich.

The nonprofit Rhode Island Marine Archaeology Project located documents in London identifying the groups of ships in that fleet and where each was scuttled


Archaeologists are almost certain they've located the scuttled ship. Source: 1 NEWS


Topics