NZ stocks: US worries cast shadow

By ELLEN READ

Poor international equity sentiment and a dearth of local news mean the New Zealand Stock Exchange top 40 index is unlikely to win any awards in the week ahead.

Growing concerns about attacks in the United States, together with violence in the Middle East and on the Indian subcontinent and the continuing confidence crisis being suffered by corporate America, are weighing heavily on US stocks.

On Friday the stocks fell, sending the Dow Jones Industrial Average to its lowest close since November 12, after semiconductor maker Intel cut its sales forecast. Benchmark indexes dropped for a third week.

While this continued weakness will drag on domestic fortunes this week, especially given the lack of local news, the NZSE top 40 has shown determined resilience recently.

In the past two weeks, the Dow Jones Industrial Average has shed 5.7 per cent compared with a gain of around 0.5 per cent for the NZSE 40.

Strong retail sales figures released on Friday will provide further support for local retail stocks.