NZX falls following US interest rate cut

Published: Thu 5 Mar 2020 10:57 AM
The local sharemarket has shrugged off fears about the coronavirus after a surprise interest rate cut in the United States spooked investors and sent shares sliding.Photo: Supplied / NZX
The Federal Reserve lowered its benchmark rate by 50 basis points to a range of 1 percent to 1.25 percent.
The benchmark top 50 Index opened about 0.75 percent lower, but this afternoon it has turned positive and posted a second positive session in a row.
It has closed up 71 points or nearly 0.33 percent higher.
The index had posted its first rise in a week yesterday, gaining more than 2 percent.Read more about the Covid-19 coronavirus:Covid-19: What it is and how to protect yourselfScientific hand-washing advice to avoid infectionNew Zealand confirms case of Covid-19 coronavirusCoronavirus patient 'never really felt unwell'More Covid-19 news
Air New Zealand was one of the bigger losers after it confirmed that the second case of the Covid-19 virus in this country had travelled from Singapore on one of its flights and then taken two domestic flights.
Overnight, US markets fell close to 3 percent after the surprise rate cut by the Federal Reserve failed to calm investor nerves.
The Federal Reserve's move mirrors that of the Australian Reserve Bank which cut its interest rate from 0.75 percent to a record low 0.5 percent on Tuesday.
Markets around Asia, with the exception of Australia, are flat or marginally higher.
Wall Street's main indices - the Dow Jones, S 500 and Nasdaq - each fell close to 3 percent.
Click a link to play audio (or right-click to download) in
MP3 format.
Local financial markets are now convinced the Reserve Bank of New Zealand will follow other central banks and cut its benchmark interest rate at its next review in three weeks.
On Monday, ANZ chief economist Sharon Zollner said she expects the Reserve Bank of New Zealand to cut the Official Cash Rate by 50 basis points to 0.5 percent at the end of March to help the local economy.
New Zealand's public broadcaster, providing comprehensive NZ news and current affairs, specialist audio features and documentaries.
Radio New Zealand is a Crown entity established under the Radio New Zealand Act 1995. Radio New Zealand News are vital elements in our programming, providing impartial news and information to New Zealanders every day. Radio New Zealand (RNZ) provides listeners with exciting and independent radio programmes in accordance with the Radio New Zealand Charter.

Next in Comment

Budget Cockups In The Time Of Coronavirus: Reporting Errors And Australia’s JobKeeper Scheme
By: Binoy Kampmark
COVID-19: Just Recovery
By: Betsan Martin and Michael Pringle
Are New Zealand's New COVID-19 Laws And Powers Really A Step Towards A Police State?
By: The Conversation
Universal Versus Targeted Assistance, A Muddled Dichotomy
By: Keith Rankin
(Un)lawful Lockdown And Government Accountability
By: Jelena Gligorijevic
Do You Consent To The New Cold War?
By: Caitlin Johnstone
Why Thinking Makes It So: Donald Trump’s Obamagate Fixation
By: Binoy Kampmark
On The Ethics (and Some Of The Economics) Of Lifting The Lockdown
By: Gordon Campbell
Brutal Choices: Anders Tegnell And Sweden’s Herd Immunity Goal
By: Binoy Kampmark
On The Trans-Tasman Bubble, And The Future Of Airlines
By: Gordon Campbell
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media