Flat start for NZ shares

The New Zealand sharemarket had a flat start to the day, as Fletcher Building shares fell a further 4c to be trading at their lowest level in nearly three months.

Markets were dominated by fears that the bailout agreed for Europe would not solve the region's deep-seated problems.

From a six-month high $8.46 in mid-April, Fletcher Building shares were down to $7.87 early today, with the 4c fall early today on top of a 4c fall yesterday.

The benchmark NZX-50 index was down 1.57 points to 3165.46 around 10.15am, having fallen 3.6 points yesterday.

Other early moves included Telecom down 2c to $2.08, Steel & Tube down 2c to $2.53, and Sanford down 2c to $4.30.

Stocks gaining early included Contact Energy, up 3c to $6.15 and NZ Refining Co up 2c to $3.59

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In the United States, investors dumped stocks in afternoon trading as worries about Europe's ability to contain Greece's fiscal problems crept back into the market.

Gold hit a new all-time high above US$1230 an ounce as investors sought the perceived safety of the precious metal, while falling crude oil prices hit shares of energy companies.

The Dow Jones industrial average dropped 0.3 per cent to end at 10,748.26, the Standard & Poor's 500 Index fell or 0.3 per cent to 1155.79, but the Nasdaq Composite Index edged up 0.03 per cent to close at 2375.31.

- NZPA