The sharemarket made small early gains, despite a continuing overnight rise in the New Zealand dollar.
Yesterday the Reserve Bank highlighted the strength of the currency as a risk to economic recovery.
It made the point as it left the official cash rate unchanged at 2.5 per cent, a move
that was followed by a rise throughout yesterday of the NZ dollar against the greenback, and a rise in wholesale interest rates.
Both the stronger currency and higher bond yields are seen as headwinds for the economy.
The benchmark NZX-50 index ended yesterday down 1.1 per cent, but by 10.15am today had gained 6.48 points to 2803.03, even though the kiwi rose to a week-high US64.65c against the greenback earlier in the morning.
Shares gaining ground early today included Rakon, up 9c to $1.63, Sky TV up 5c to $4.34, Hallenstein Glasson up 5c to $2.50, Sky City up 3c to $2.79, while market leader Telecom lifted 2c to $2.57.
Fisher & Paykel Healthcare edged down 1c early to $3.00, with Restaurant Brands also easing 1c, to $1.05.
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In the US stocks racked up modest gains across a wide array of sectors, aided by rising commodity prices and improving labour market conditions, along with a sharp drop in interest rates.
Demand was well above average for an auction of US$11 billion ($17.3b) of 30-year US Treasury bonds, resulting in a sharp rally in the bond market. Stocks have tracked bonds of late, with higher rates causing concern among investors, but the fall-off in bond prices, which move inversely to their yields, makes stocks more attractive.
The Dow Jones industrial average gained 0.4 per cent to 8770.92, the Standard & Poor's 500 Index rose 0.6 per cent to 944.89, the Nasdaq Composite Index added 0.5 per cent to 1862.37.
- NZPA
