NZ shares fall with global rout
New Zealand shares dropped with a global sell-off which hit most major indices overnight as investors were rattled by everything from the Evergrande saga in China to the US debt limit impasse and surging energy prices. The S&P/NZX 50 Index fell 54.6 points, or 0.4%, to 13,189.23.
Turnover was $158 million. “The number and extent of global growth potholes are growing and there’s a whiff of stagflation concerns in the air, with global equity markets tumbling amidst a further incremental lift in global bond yields,” said BNZ interest rate strategist Jason Wong.
Currency traders flocked to safe havens such as the US dollar which rose at the expense of the kiwi and Australian dollars which fell as much as 1% overnight. Often during a market panic like this bond yields fall as investors moved to safe assets, however NZ government bonds remained near 1-year highs across the yield curve and global rates continued to grind slowly higher.
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