14 Jul 2008

NZ market awaited

9:58 am on 14 July 2008

Stockbrokers are optimistic the latest developments in the United States credit market won't have a major impact on the New Zealand sharemarket on Monday morning.

US stocks tumbled on Friday after bsanking regulators took control of a major mortgage lender, IndyMac.

It was the third-largest bank failure in American history and is expected to further damage confidence on Wall Street.

Fears about the stability of the top two home financing providers, Fannie Mae and Freddie Mac, were another factor.

Stockbrokers say the international activity is likely to have some effect on trading, but domestic developments such as the latest Consumer Price Index announcement on Tuesday will have a greater impact.

The NZX 50 index closed at 3121 on Friday. The Australian 200 index was up 34 points, to 4972.

The Dow Jones industrial average fell 128.48 points, or 1.14%, to 11,100.54 on Friday. Standard & Poor's 500 Index slid 13.90 points, or 1.11%, to 1,239.49.

The Nasdaq Composite Index dropped 18.77 points, or 0.83%, to 2,239.08.