NZ sharemarket flat early

The New Zealand sharemarket was flat in early trading after weak United States manufacturing, labour market and home sales data heightened fears of a double-dip recession in the US.

Around 10.15am the benchmark NZX-50 index was down 1.88 points to 2931.94, having a few minutes earlier dipped below the 2930 level for the first time in more than 11 months. Yesterday the index lost 38.3 points as it fell for a sixth consecutive session on continued weakness in offshore markets.

Fletcher Building opened 5c down at $7.70 but reversed the loss within 20 minutes of the market opening to be unchanged on $7.75.

Port of Tauranga lost 4c to $6.60, NZ Oil & Gas fell 3c to $1.21, and Air New Zealand slipped 2c to $1.03. NZ Refining Co gained 5c to $2.95.

Retailer Postie Plus Group, which last closed at 32c, issued a sales update but did not trade in the first few minutes of the market open.

Postie Plus said it had seen the market slow down in May and June. The impact was that sales growth for the year to August 1 was now expected to be 4.5 per cent, down from 7 per cent growth that had been indicated previously.

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In the US, major indexes were lower for a fourth straight day after suffering their worst quarter since late 2008, but losses eased near the end of the session.

"Right now everyone is so concerned about a major 'potential depression' or deflation taking place - it's really roiling the market," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

The Dow Jones industrial average dropped 0.4 per cent to 9732.53, the Standard & Poor's 500 Index shed 0.3 per cent to 1027.38, and the Nasdaq Composite Index lost 0.4 per cent to 2101.36.

- NZPA