Global stock exchange indexes have surged in value as the
European bail-out fund was boosted to 1 trillion ($NZ1.72
trillion) and investors agreed to a voluntary writedown of
50% of Greece's bank debt.
A turnaround in Wall
Street's fortunes spread around the globe yesterday, applying
a brake on three days of panic selling, but the prospect of
further market volatility remains.
The New Zealand sharemarket was pummelled when it opened for
the start of the week, after Standard & Poor's downgraded
the United States by one notch to AA+ on the weekend.
The New Zealand sharemarket plunged in early trading after
investors around the world dumped stocks to rush to the
security of cash and government bonds.
A takeover offer for New Zealand Farming Systems Uruguay
(NZRSU) offered some rare positive news for investors in the
New Zealand sharemarket, as most stocks succumbed to general
weakness in international markets.
The New Zealand sharemarket started the day with a solid
increase after stocks in the United States rallied for a
sixth straight day as the earnings season got off to a good
start.
The New Zealand sharemarket closed a touch weaker after a
quiet session, with all eyes on Wall Street after the company
reporting season kicked off in the United States with a
positive surprise.
The New Zealand sharemarket posted modest gains on very low
volume but brokers said it could be an interesting week with
the US corporate reporting season getting under way.
