NZ share market falls after US strikes on Iran
NZX sign
Photo:
RNZ / Angus Dreaver
The New Zealand sharemarket had a sharp fall in early trading on Monday in response to the Middle East conflict.
The benchmark NZX-50 index has fallen more than 100 points, or about 08 percent, on light turnover.
The New Zealand market is the first in the world to open after
US bombing raids
on three Iranian nuclear facilities.
New Zealand stocks have limited direct exposure to the conflict, but companies vulnerable to travel and freight disruption and higher fuel costs are the most likely to fall.
Indications are the Australian and Japanese markets are likely to fall somewhere around half a percent when they open in a few hours.
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Commentators say escalation of the conflict in the Middle East poses a major
threat to New Zealand's economy
- as well as households' KiwiSaver balances and petrol prices.
Shamubeel Eaqub, chief economist at KiwiSaver provider Simplicity, said there could be bumpiness ahead for households.
With US involvement the uncertainty was higher than before, but for most New Zealanders, the message was to "hang in there".
"The oil price - you have no control over it. We are price takers, so whatever you can do in your own control to be able to manage your transport [might help]."
He said when it came to financial markets, that was also generally out of an investor's hands. But if they were worried about their KiwiSaver accounts, they should remember that it was time in the market that would make the difference over the long term rather than short-term movements.
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