KEY POINTS:
New Zealand investors stuck their head above the parapet again today, and the sharemarket opened up about 2 per cent after a surge of optimism on Wall Street.
A rise in the Dow Jones industrials index of 400 points gave that market a shot in the arm.
The
revival of American markets overnight reflected investors seeing signs of a reviving credit market and a call from Federal Reserve Chairman Ben Bernanke for the US Government to give its economy another US$150 million ($244 million) boost.
In New Zealand the benchmark NZSX-50 index is up 81 points, or 2.8 per cent to 2971 points.
Yesterday, it rose 81.155 points, or 2.889 per cent, though for the year it is still down about 27 per cent.
But the lift in NZ markets was tempered mid-morning by the release of annual inflation data which showed the consumers' price index up 5.1 per cent in the September quarter, its highest level in 18 years.
The latest figures followed a 1.6 per cent rise in the CPI in the June quarter, which took the annual inflation rate at that time to 4 per cent.
Among the 53 stocks to change hands in early trade on the NZX, there were 36 rises and just three falls.
Telecom shares are up 6 cents to $2.56, Contact Energy is up 20c to $7.50, while Fletcher Building shares are up 21c to $6.42.
Other stocks to rise on reasonable volumes in early trading included Fisher and Paykel Appliances, up 7c to $1.39, and Fisher and Paykel Health, up 5c at $3.20.
But as a reminder of the cold winds in the global economy, the warrants for ABN Amro equity derivatives fell 32c to 11c. The other early falls were minor: 1c each for NZ Windfarms and Lyttelton Port.
Last night the Australian share market closed almost 4 per cent higher on stronger resource and banking stocks - sparking hopes of a recovery on that side of the Tasman.
At the close, the benchmark S&P/ASX200 index was up 17 1.5 points, or 4.32 per cent, at 4142.3.
And on Wall Street overnight, Mr Bernanke has hinted at more steps to help the economy, and reductions in lending rates have eased concerns that tight credit will prolong the recession.
He has said the US economy is likely to be "weak for several quarters, and with some risk of a protracted slowdown", but he also said a fresh round of government moves might help ease the country's economic weakness.
The Dow rose 413.21, or 4.67 per cent, to 9265.43. Broader indexes also rose sharply. The Standard & Poor's 500 index jumped 44.85, or 4.77 per cent, to 985.40. The Nasdaq composite index rose 58.74, or 3.43 per cent, to 1770.03.
- NZPA