30 Apr 2009

NZ dollar falls after cut to OCR

7:37 pm on 30 April 2009

The New Zealand sharemarket closed up 40 points or 1.5% on Thursday to 2740 on turnover of $109 million.

Telecom gained 10 cents to $2.82, Contact Energy lost 8c to $5.70. Fletcher Building gained 32c to $6.70.

The Warehouse gained 9c to $3.59, Infratil gained 2c to $1.57 and Hallenstein Glasson gained 2c to $2.56.

In currency markets, the Reserve Bank's cut of the Official Cash Rate saw the NZ dollar fall 1% against the greenback to 56.55 US cents, and to a seven-week low of 77.95 against the Australian dollar.

It's at 38.19 pence, 55.04 yen and 0.4256 euro. The TWI stands at 55.87.

The Australian share market closed higher on Thursday, rising by 85.2 points, or 2.31%, to 3780.5, while the broader All Ordinaries had lifted 82.8 points, or 2.26%, to 3744.7.

Improvements in Japan and Europe

Japanese share prices jumped 3.94% on Thursday as investors cheered a surge on Wall Street as well as the first increase in Japanese factory output in six months.

However, Japan's economy is expected to shrink 3.1% in this fiscal year to March, more than previously feared, the central bank says.

Europe's leading stock markets rose slightly at the start of trading on Thursday, with London's FTSE index gaining 0.60% to 4,203.86 points.

In Paris the CAC 40 index rose 1.55% to 3,165.35 points and the Frankfurt DAX was up 0.60% at 4,732.9 points.

Signs of recovery in US

Stocks in the United States climbed on Wednesday as investors saw seeds of recovery in a weak report on the US economy.

The Commerce Department's said first quarter gross domestic product showed the economy contracted at an annualised rate of 6.1%.

The Dow Jones Industrial Average gained 168.78 points, or 2.11%, to 8,185.73.

The Nasdaq composite advanced 38.13 points, or 2.28%, to 1,711.94 and Standard & Poor's 500 increased 18.48 points, or 2.16%, to 873.64.