The NZX50 remained steady as overseas markets get spooked

After a mixed day on Wall Street, the S&P/NZX 50 Index fell sharply in the morning to a low of 11,924.15 but then recovered to finish flat at 11,962.04, down 18.36 points or 0.15%.

There were 52 gainers and 76 decliners on the main board, with 30.43 million shares worth $107.06m changing hands.

Rating agency Fitch put the cat among the pigeons by downgrading US debt from AAA to AA+, citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills.

The move surprised investors. The Hong Kong Hang Seng index was down 2.17% to 19,575.94 points at 6pm NZ time, and Japan’s Nikkei had fallen 2.23% to 32,729.76. Across the Tasman, the S&P/ASX 200 Index was down 1.25% to 7357.4 points.