NZ shares edge up early

The New Zealand sharemarket only managed to edge up in early trade, despite strong gains in stocks in the United States.

Around 10.15am the benchmark NZX-50 index was up 3.48 points to 3155.03, having gained 12.8 points yesterday.

Stocks gaining early included Trustpower up 5c to $7.50, Steel & Tube up 4c to $3.14, NZ Oil & Gas up 2c to $1.72, and Telecom up 2c to $2.60.

Early falls were recorded by Cavalier Corporation, down 5c to $2.50, Fletcher Building down 2c to $8.38, and Fisher & Paykel Healthcare down 2c to $3.15.

The lukewarm interest by investors in this country comes as the NZ dollar continues to rise against the greenback, euro and sterling.

The kiwi, however, did ease against the Australian dollar overnight after the Reserve Bank of Australia raised interest rates to 3.25 per cent from 3 per cent yesterday afternoon.

Australia became the first major country to raise rates since the start of the financial crisis last year.

In the US, investors barrelled into stocks for a second day, betting corporate profits will surge as the global economy recovers.

The Dow Jones industrial average rose nearly 132 points, bringing its two-day advance to 244.

The Australian interest rate move touched off hopes that other economies may also be strengthening. It also dented demand for the US dollar, which, in turn, raised commodity prices. US energy and materials stocks jumped as oil rose and gold reached a record high.

The Dow rose 1.4 per cent to 9731.25, the Standard & Poor's 500 index rose 1.4 per cent to 1054.72, while the Nasdaq composite index rose 1.7 per cent to 2103.57.

- NZPA