(RTTNews) - The New Zealand stock market was trading sharply lower on Monday on fears that the passage of the US$700 billion financial rescue package in the U.S. would not be able to stave off a global economic slowdown.

At 8.00 PM ET, the benchmark NZX 50 Index was declining 64.97 points or 2.06% to 3086.56, while the broader NZX All Capital Index was losing 53.45 points or 1.68% to 3,136.71.

The New Zealand stock market closed sharply lower on Friday, ending a two-day winning streak. The NZX 50 index closed down 81.10 points or 2.57% at 3,151.54 and the NZX All Capital index lost 70.45 points or 2.21% to finish at 3,190.17.

With investors reacting to the House of Representatives’ vote to pass the government’s US$700 billion bill to rescue the troubled credit markets, the U.S. stock markets ended a volatile session sharply lower on Friday. The Dow ended the session down more than 150 points after soaring 300 points.

Oil closed a choppy session slightly lower on Friday. Light sweet crude for November delivery closed at US$93.88 on the New York Mercantile Exchange, down US$0.09 on the session. Crude closed down more than US$13 a barrel for the week, posting declines in four of the five sessions.

Among economic news on Monday, traders get a look at a forecast of New Zealand’s economy as the nation heads toward elections in November. The 2008 Pre-Election Economic and Fiscal Update is scheduled for release later today. The incumbent Labor Party, headed by Prime Minister Helen Clark, has been governing for about nine years. In the current year, data indicates the nation has fallen into economic recession.

In the currency market, the New Zealand dollar was trading slightly lower against the U.S. dollar on Monday. In early trades, the kiwi was buying US$0.6602 compared to US$0.6622 in late trades on Friday.

Among the top stocks, Telecom lost 2.08%, Contact Energy slid 2.76% and Fletcher Building shed 3.22%.

In the retail space, jeweler Michael Hill fell 6.49%, Pumpkin Patch shed 3.08%, The Warehouse Group gave away 0.63% and Hallenstein Glasson remained unchanged.

Among other stocks, Nuplex dipped 4.88%, Sky City slipped 2.23% and Steel & Tube eased 0.53%. Pike River Coal rose 4.37%. Energy stock TrustPower remained unchanged and Vector declined 0.47%.

Dual-listed stock AMP tumbled 5.88%, Lion Nathan dropped 4.68%, ANZ Banking declined 1.38% and Westpac gave away 1.65%.

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Posted in Categories: New Zealand, Releases, Stocks, USA.

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