(RTTNews) - The New Zealand share market opened flat on Wednesday, following a lukewarm lead from the Wall Street, where U.S. stocks closed overnight on both sides of the unchanged line on mixed economic news.

The benchmark NZX 50 index rose slightly by 1.20 points or 0.04% to 3,193.68 shortly after the market opened for the day. Meanwhile, the broader NZX All Capital index declined marginally by 1.71 points or 0.05% to be at 3,200.76.

New Zealand traders returned to work Tuesday after an extended weekend. The kiwi market joined the region-wide move lower, with the benchmark NZX-50 index declining 22.5 points or 0.7 percent to 3,192. Declining stocks outnumbered advancers by 71 to 20 with 28 unchanged.

Overseas, U.S. stocks saw a choppy trading session on Tuesday, as weak consumer confidence and positive news on the housing market diverged trader sentiment. The major averages closed on opposite sides of the unchanged, with the tech heavy Nasdaq closing notably lower.

Some selling pressure was generated by news that consumer confidence unexpectedly deteriorated in the month of October, with the Conference Board’s consumer confidence index showing a notable decline amid continued concerns about labor market conditions.

The consumer confidence index fell to 47.7 in October from a revised 53.4 in September, falling well short of the 53.5 expected by economists. The reading was also notably lower than the 53.1 originally reported for the previous month.

Meanwhile, a report from Standard and Poor’s showed a continued decrease in home prices in the month of August, although the pace of the annual rate of decline slowed by even more than economists had been expecting.

The S&P/Case-Shiller 20-City Composite Home Price Index fell at an annual rate of 11.3 percent in August compared to a 13.3 percent decrease in July. Economists had been expecting the report to show an 11.9 percent drop in prices.

On the earnings front today, the number of first tier firms reporting quarterly results today was subdued, with Valero Energy (VLO), U.S. Steel (X) and Honda Motor Co. (HMC) releasing a mixed batch of reports along with a slew of others.

In other news, the Senate is expected to take the first step this week to extend unemployment insurance benefits to thousands of out-of-work Americans.

Unemployment benefits, which were initially extended under the $787 economic stimulus and recovery bill, are in danger of expiring by the end of the year and some have estimated that approximately 7,000 Americans are losing their benefits each day.

The bill would extend benefits for another 14 weeks across the country, with an additional six weeks of coverage in the states with the highest unemployment rates.

All the major averages saw choppy trading going into the close, remaining stuck on opposite sides of the unchanged line. While the Dow rose by 14.21 points or 0.1 percent to 9,882.17, the S&P 500 fell by 3.54 points or 0.3 percent to 1,063.41 and the Nasdaq dropped by 25.76 points or 1.2 percent to 2,116.09.

Crude oil prices turned higher amid choppy trading on the New York Mercantile Exchange on Tuesday as traders await the Energy Information Administration’s inventory data. Light sweet crude for December closed Tuesday at $79.55, up 87 cents on the session. Prices touched as low as $77.81 after earlier reaching as high as $79.78.

On the currency front, the New Zealand dollar was buying US74.53c by 8am on Wednesday, compared to US74.76c at 5pm on Tuesday.

In the early trading on the New Zealand stock market on Wednesday, market leader Telecom added 0.40%, while second ranked Contact Energy eased 0.16% and Fletcher Building, the third best stock, inched up by 0.12%.

In the retail sector, Hallenstein Glasson and Warehouse remained unchanged, as jewelry retailer Michael Hill International surged 1.54% and Pumpkin Patch gave up 0.99%. Among energy stocks, TrustPower remained unchanged, as Vector lost 2.55% in the early trading.

Among the dual listed issues, Australia and NZ Banking Corp added 0.14%, Telstra collected 0.25% and Westpac Bank gave up 0.15%, as AMP, APN News & Media and Lion Nathan remained unchanged in the early trading on Wednesday morning.

Among other notable stocks, Infratil gained 0.63%, Mainfreight collected 0.37%, Methven surged 1.18%, Nuplex lost 1.67% and Sky City advanced 0.58%, as Sky Network Television and Steel & Tube Holdings remained unchanged. Meanwhile, Fisher & Paykel Appliances remained unchanged and Fisher & Paykel Healthcare gained 1.00%.

The major losers included -Air New Zealand by 2.21%, Cavalier by 0.40%, New Zealand Refining Company by 0.92%, Port of Tauranga by 0.14%, Rakon by 1.69% and Restaurant Brands NZ by 1.96%.

The gainers on Wednesday morning included– ING Property Trust by 1.27%, New Zealand Oil & Gas by 0.58%, Property For Industry by 0.83%, PGG Wrightson by 1.64%, Pike River Coal by 0.90% and Tower by 1.18%.

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

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