NZD dips below US80c as market drops further

The New Zealand dollar hit a low of 79.66 US cents this afternoon. File photo / NZ Herald

The New Zealand dollar has hit a low of 79.66 US cents this afternoon, while the NZX-50 dropped by 2.75 per cent today, as jitters on the markets continued from last night's sell off in Europe and the US.

Westpac Market strategist Imre Spizer says the Kiwi has stabilised somewhat during the past hour.

"I think they're getting exhausted with the degree of selling and for no other reason than the we've bounced a little bit to around 81 cents."

Mr Spizer said the selling was coming in waves and they were waiting for the next one.

The sharp sell off that started in the European and US markets overnight has also followed through with our stock exchange and the Asian markets.

The benchmark NZX-50 index was down by 2.75 per cent in today's trading, after a 2.78 per cent fall yesterday.

Only one of New Zealand's top fifty listed companies lifted in value today, with Cavalier Corp making modest gains, while Kathmandu, Methven and Gas and Skellerup saw the biggest falls today.

Mark Lister of Craigs Investment Partners said the Australian market has regained some ground after plunging more than five percent earlier this afternoon.

He says it's red all round, none of the stock are performing

Bernard Doyle of JB Were says economic data this afternoon from China, one of Australia's biggest trading partners, is likely to fuel further sell off.

"It might be an excuse for further selling because these worries are focused on Europe and North America, really China can only feed some of the investor fears at the moment," he told Newstalk ZB.

Westpac Market Strategist Imre Spizer says all eyes are on data coming out of China this afternoon.

He says the industrial production figures will give an indication if the Chinese economy has slowed and inflation numbers will determine if further tightening is needed to slow down the economy.

"Both of those things would be bad for global risk markets because they are looking to this part of the world as really the only engine of growth left," he told Newstalk ZB. "If this engine stops firing then there are big troubles indeed."

Australian Treasurer Wayne Swan has urged fraught investors not to do anything hasty as the local share market takes another massive hit after a plunge on Wall Street.

- Newstalk ZB, HERALD ONLINE