NZ sharemarket falls early

The New Zealand sharemarket fell in early trading after world stock markets declined as investors worried about the prospects for growth.

Around 10.15am the benchmark NZX-50 index was down 12.73 points to 3036.74, on top of a 4.8-point fall yesterday.

Fletcher Building fell 9c early to $7.88 to be at its lowest level in a month, having fallen 15c yesterday.

Auckland Airport dropped 2c to $1.93, Freightways fell 2c to $2.82, NZ Oil & Gas was down 2c to $1.25, Ryman Healthcare lost 2c to $2.03, and The Warehouse fell 2c to $3.52.

Dual-listed bank Westpac lost 90c or 3.3 per cent to $26.60.

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In the United States, fresh signs of consumer weakness and worries about stringent financial regulation provoked investors to unload positions.

Retailers were among the biggest decliners a day after discouraging outlooks from Bed Bath & Beyond and athletic apparel maker Nike.

"People's general focus is on how fragile the recovery is, and recent data points are giving fodder to the double-dip camp," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

Banks in the US were pressured by fears Congress would pass stringent rules in an overhaul of financial regulations.

The Dow Jones industrial average dropped 1.4 per cent to 10,152.80, the Standard & Poor's 500 Index fell 1.7 per cent to 1073.70, and the Nasdaq Composite Index lost 1.6 per cent to 2217.42.

- NZPA