NZX 50 dips towards technical correction

The S&P/NZX 50 Index fell 37.40 points, or 0.3%, to 12,388.84. Within the index, 24 stocks fell, 20 rose and six were unchanged. Turnover was $198.3 million.

Today’s decline brings the benchmark equity index more than 9% below its Jan 8 record — a technical correction in financial markets is defined as being a 10% decline from its most recent peak. 

The index’s decline begun with renewable energy stocks falling from unreasonable heights in January but has continued as bond yields have surged, undermining asset prices.

ASB economist Mike Jones said with the 10-year swap rates sitting above 1.7% and the 2-year swap rate at just 0.3%, the yield curve was the steepest it had been since early 2014.