KEY POINTS:
The New Zealand sharemarket dived early in opening trading today, following the lead of overseas markets.
The benchmark NZSX-50 index opened at 2682.928 and lost 55 points, or 2.052 per cent to 2627.880 in the first quarter of an hour.
Dual-listed stock Westpac Banking, starting at $21.20 was the biggest early loser, dropping 145c, or 6.84 per cent, to $19.75.
Telecom lost 10c to go to 223 and ANZ Bank kicked off at $17.50 and dropped 100c, or 5.71 per cent.
Infratil lost 6c to go to 166 and New Zealand Oil and Gas dropped 5c to 125.
Fletcher Building started at 555 and lost 15c to 540.
The only stocks to buck the trend were Tourism Holdings which rose 3c, or 4.14 per cent, to 75, and Air New Zealand, which gained 1c to 88.
In Australia the stock market was expected to open weaker, after US and European stocks plunged on a declaration that the US officially is in recession.
In New Zealand all eyes are on the next interest rate cut, expected on Thursday.
Yesterday, the Australian share market closed weaker as indices were knocked backwards by renewed softness in hard metal prices.
The benchmark S&P/ASX200 index finished down 61.3, or 1.64 per cent, at 3681.2, while the broader All Ordinaries lost 53.7 points, or 1.46 per cent, at 3619.
The Reserve Bank of Australia is due make a decision on interest rates due this afternoon, where it is expected to again cut the official rate, by at least 0.75 of a percentage point.
The Reserve Bank of New Zealand (RBNZ) will release its December monetary policy statement on Thursday and was also expected again to cut the official cash rate aggressively.
US stocks tumbled on Monday as news pointing to the deepening economic slump around the world erased the bulk of last week's sharp gains, with financial services companies and retailers among Wall Street's biggest casualties.
The Dow Jones industrial average was down 679.95 points, or 7.70 per cent, to end unofficially at 8149.09, based on the latest data. The Standard & Poor's 500 Index was down 80.05 points, or 8.93 per cent, to finish unofficially at 816.19. The Nasdaq Composite Index was down 137.50 points, or 8.95 per cent, to close unofficially at 1398.07.
- NZPA