NZ shares, dollar steady after rough week

file photo / Paul Estcourt

New Zealand financial markets markets were in a holding pattern today after Europe's debt woes sparked a wave of selling around world last week.

By midday the New Zealand dollar was "oscillating" at around US77.4c, little-changed from Friday's closing level but well down from an opening level of US78.20. The currency dropped by US5c last week.

"There has been some stabilisation but when you step back from it, things remain very uncertain," Bank of New Zealand currency strategist Mike Burrowes told APNZ.

"There are still a number of bridges to cross before the Greek sovereign debt crisis is resolved," he said.

The local share market was steady, the NZX 50 index dropping by just 2 points to 3280.77 by late morning.

Financial markets had taken some comfort from a slightly stronger finish in the United States on Friday, which saw the Dow Jones index put on a slight 37.65-point gain to finish at 10,771.48.

But investors were getting mixed messages from other parts of the world. In Australia, stocks closed finished last week at a two-year low. Markets in France, Britain and Germany all put on modest gains while Asian markets were generally softer.

Markets remained nervous about the European Union's ability to deal with Greece's sovereign debt crisis, along with the debt troubles of other members of the union.