Share slide turns but wobbles remain in world outlook

A six-day sharemarket slide that wiped 4 per cent off the NZX-50 index stalled yesterday, but concerns remain about the international outlook.

The benchmark NZX-50 closed up 4 points, or 0.15 per cent yesterday - a small relief for investors.

Worries the economic recovery was not taking hold were rubbing off on the market, said Hamilton Hindin Greene director Grant Williamson.

"Overall it's been a terrible week for the markets led by the offshore weakness and some evidence the economic data is weaker than expected showing the economic recovery is very slow and sluggish," said Williamson.

Fletcher Building lost another 9c to close at $7.66 yesterday, compounding Thursday's 10c loss, in reaction to weaker Australian building consent data, said Williamson.

Craigs Investment Partners client adviser Belinda Stanley said the slight overall gain showed there were buyers out there on the sidelines waiting to pick up stocks at reasonable prices.

Currencies of commodity-producing nations strengthened and mining shares gained after Australian Prime Minister Julia Gillard reached a compromise with the mining industry on a new resources tax, ending a dispute that cost her predecessor his job.

The mining tax will now be 30 per cent for iron ore and coal and 40 per cent for oil and gas - former PM Kevin Rudd had proposed a 40 per cent rate for all resources.

Head of currency trading at ANZ National Bank, Tony Allen, said: "The Aussie and kiwi will be focused on the bigger number which is non-farm payrolls, and how that plays out will dictate their performance from here."

Most Asian stock markets posted losses as investors awaited a crucial reading on the US jobs market amid signs economic recovery is losing momentum around the world.

The falls followed Wall St beginning the third quarter with another loss after reports on unemployment benefit claims, housing and manufacturing raised economic worries.

- AGENCIES