‘Sanity’ returns to market

The S&P/NZX 50 Index rose 23.31 points, or 0.2%, to 12,522.67. The majority of stocks rose and turnover was $189.4 million.

BNZ’s Jason Wong said a “modicum of sanity” had returned after investors had strong reactions to the US Federal Reserve’s suggestion it may raise interest rates and taper bond purchases sooner than expected – albeit still at least 18 months away.

The local equity market was one of the least affected during last week’s reaction, with the biggest moves seen in interest rates and currencies.

The kiwi dollar made a small recovery today, climbing back to 69.77 US cents by 3pm in Wellington from 69.52 cents yesterday.