World and New Zealand Markets Suffer
The NZX dropped almost 130 points in the first half of the 30th of September, in what many pundits are already calling “Black Tuesday”.
Markets around the world, including the New Zealand Stock Exchange (NZX) faced plummets after the news hit of the US Congresses’ rejection of the $700 billion bank bailout plan. While damage in New Zealand is said to be relatively minimal, due to the lower exposure to credit, drops have occurred and are unlikely to rise. The NZX reached its lowest point today shortly after 10am when it had dropped 144 points, although this has steadied out to 129 since.
The effect of the rejected bailout was felt harder in more relevant markets. The Dow Jones closed 770 points down, making it the worst drop in a single day on a points scale. The ASX is said to have lost over $A55 billion throughout the day, exceeding the entire value of the NZX.