New Zealand investors remained nervous this morning ahead of the vote tonight on the $US700 billion ($NZ1.05 trillion) rescue package for Wall Street as share values headed south on opening.
Following the lead of the US market overnight, the NZX-50 dropped 1.5% within minutes of opening.
The bulk of the top 50 companies lost value, with Fletcher Building $7.20 leading the way, dropping 25c, or 3.47%.
Telecom lost 10c, or 3.39%, to go from $2.95 to $2.85. Contact shed 12c, or 1.52%, to be at $7.76 fter starting out at $7.88. Fisher & Paykel Healthcare lost 5c, or 1.64%, from its starting price of $3.05 to be at $3.
Overnight in the US, stocks slid as tight credit markets and bleak economic data forced investors to focus on the rocky road still ahead for the US economy even if Congress passes the rescue package.
The number of people filing for unemployment benefits hit a seven-year high and there was a steep drop in factory orders in August, signalling an "almost a perfect storm'', according to one broker.
The Dow Jones industrial average fell 348.22 points, or 3.22%, to 10,482.85, while the Standard & Poor's 500 Index slid 46.78 points, or 4.03%, to 1,114.28. The Nasdaq Composite Index dropped 92.68 points, or 4.48%, to 1,976.72.
Since the beginning of the year, the Dow has lost 21%, while the S&P 500 has dropped 24% and the Nasdaq has fallen 25%.
Declining stocks outnumbered advancing ones by about five to one on both the NYSE and on Nasdaq.
