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The New Zealand sharemarket was down on opening today after confirmation of the United States Government's US$700 billion ($1.05 trillion) bailout failed to rally international markets.
The NZX-50 index is down 85 points, or 2.8 per cent, to 3065 after finishing last week at 3151.54.
Market leader Telecom is down 7 cents to $2.82, while Contact Energy shares are down 21c to $7.40. Fletcher Building shares have been hit hard today, fallen 23c to $6.60
The fall follows Wall Street's worst week in seven years last week with stocks taking a further tumble on Friday on fears that the financial rescue package may not unblock credit markets and stave off a US recession.
The US House of Representatives passed the bill on its second try and President George W Bush signed it into law on Saturday (NZ time).
Financial stocks, which had traded sharply higher on the expectation the bill would be passed, fell after the House vote.
Traders cited profit-taking and said the market was now focusing on the tough economic road still ahead and on how the bill will be implemented.
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In the US, the Dow Jones industrial average fell 157.15 points, or 1.50 per cent, to 10,325.70 on Friday, while the Standard & Poor's 500 Index slid 15.04 points, or 1.35 per cent, to 1099.24. It was the first time the S&P closed below 1100 in almost four years.
The Nasdaq Composite Index was down 29.33 points, or 1.48 per cent, at 1947.39.
- NZPA
