"Investors are waiting for inflation to peak – that could happen soon in the United States – and once it starts coming down that might be a positive catalyst for the markets.
"I do wonder if the local market has priced in any deterioration in corporate earnings if the economy weakens, but a recession isn't guaranteed," said Stratful. "Central banks will keep raising interest rates quickly to rein in inflation but then they could be in a position to cut rates should economic conditions deteriorate."
Some analysts in the US were wondering if their markets had bottomed after a strong rebound on Wall Street overnight.
The Dow Jones Industrial Average and S&P 500 had their best days in June, rising 2.15 per cent to 30,530.25 points and 2.45 per cent to 3764.79 respectively. The Nasdaq Composite was up 2.51 per cent to 11,069.3.
At home, Fletcher Building rose 24c or 4.96 per cent to $5.08 (reaching an intraday high of $5.22) after telling analysts that its Gib supply will get back to normal by October, and full-year operating earnings (ebit) is on track for $750m, with second half ebit margin at 9.5 per cent.
During an Investor Day presentation, Fletcher – with a 94 per cent share of the market - said customers brought forward Gib orders, resulting in more than double the volume between late November and February.
Fletcher introduced an allocation system, worked on lifting production at its plasterboard factory, and granted 10 trademark royalty-free licenses allowing others to import plasterboards.
Imports from Fletcher's supplier in Australia will resume in August, and Fletcher's new plant in Tauranga will be operating by May next year, adding 30 per cent to the country's production capacity.
Stratful said it was reassuring that Fletcher reiterated its full-year guidance, rather than a downgrade, as a sign its earnings were holding up.
Two more stocks that have been oversold rebounded. Skellerup Holdings increased 25c or 5.45 per cent to $4.84, and Freightways gained 10c to $9.30.
Mercury was up 15c or 2.77 per cent to $5.56; Hallenstein Glasson improved 15c or 2.91 per cent to $5.30; Rakon gained 5c or 4.07 per cent to $1.28; and wine exporter Delegat Group increased 21c or 2.06 per cent to $10.41.
The Colonial Motor Company was up 20c or 2.35 per cent to $8.70; Sky Network Television collected 5c or 2.17 per cent to $2.35; Serko increased 10c or 2.74 per cent to $3.75; and Kingfish fund improved 4c or 2.74 per cent to $1.50.
Move Logistics gained another 6c or 5.41 per cent to $1.17; medicinal cannabis company Cannasouth was up 1.5c or 4.35 per cent to 36c; and Metro Performance Glass increased 1.5c or 6.67 per cent to 24c after releasing its annual report.
Chatham Rock Phosphate rose 2.5c or 8.33 per cent to 36c after providing the market with a report of its attendance at the Prospectors & Developers Association of Canada annual conference in Toronto.
DGL Group, up 11c or 3.99 per cent to $2.87, will delist from the NZX on June 30 and will cease trading next Tuesday. DGL will then have a primary listing on the ASX.
NZME has secured a five-year agreement to supply paid content to Google News Showcase when it launches in New Zealand. NZME's share price was unchanged at $1.18.
Contact Energy fell 24c or 3.31 per cent to $7; Ryman Healthcare was down 18c or 2 per cent to $8.80; and a2 Milk declined 14c or 2.94 per cent to $4.62.
Eroad continued its slide from a high of $6.70, falling 9c or 5.39 per cent to $1.58; Pushpay Holdings was down 3c or 2.36 per cent to $1.24; My Food Bag declined 3c or 3.53 per cent to 82c; Air New Zealand decreased 1.5c or 2.7 per cent to 54c; and Pacific Edge shed 3c per 4.11 per cent to 70c.
Winton Land, down 2c to $2.73, has repaid the $130m project debt facility for the Te Kauwhata Lakeside development and is now debt free with more than $200m cash.
