Sharemarket doesn't like NZ's omicron outbreak

The S&P/NZX 50 Index dropped 156.94 points, or 1.3%, to 12,191.06 today, and is down almost 6.5% so far this year in what’s been a slow start for equity markets as the prospect of rising interest rates saps the relative allure of shares. Turner was $112.2 million, with Wellington traders out for the region’s anniversary holiday.

Craigs Investment Partners investment adviser Peter McIntyre said the Fed’s upcoming meeting is leaving investors nervous about how high rates will rise in the coming 12 months.

“The market is concerned if there's going to be more than four interest rate increases from the Federal Reserve,” McIntyre.

That interest rate outlook is also weighing on risk-sensitive currencies such as the kiwi dollar, which fell to 67.12 US cents at 3pm in Wellington from 67.34 cents last week, and trading near a 15-month low. The trade-weighted index fell to 71.82 from 72.06.