US rating downgrade rattles fragile investors and NZX50 dips

The S&P/NZX 50 Index followed the same pattern as the day before, down in the morning and recovering in the afternoon, to close at 11,936.62 and declining 25.41 points or 0.21%. The index reached an intraday low of 11,884.2 points.

There was fragility, with 39 gainers and 90 decliners over the whole market, with 33.48 million shares worth $111.4m changing hands.

Mark Lister, investment director with Craigs Investment Partners, said the local market held its own reasonably well despite a sharp fall in the US. “We haven’t had the same stunning rally that they have had.

“Our market is in a reasonably good place. There’s been an uptick in unemployment, the labour shortage is starting to ease, and wage pressures are coming off. Maybe, we won’t see any more interest rate rises.