Cold water poured on V-shaped recovery
The S&P/NZX 50 Index dropped 105.59 points, or 0.9 percent, to 11,154.93. Within the index, 37 stocks fell, 11 rose, and two were unchanged. Turnover was $185 million.
Share markets across Asia-Pacific reacted negatively to a downbeat economic outlook from the Fed, predicting the US economy would shrink 6.5 percent and unemployment would near 10 percent this year, contradicting investors who had been betting on a swift recovery from the pandemic.
Michael McCarthy, an analyst at CMC Markets, said there had been some expectation that economic projections may be improved following positive May jobs data in the US.
“The fact that they didn’t revise upwards really skittled sentiment,” he said.
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