15 Jul 2014

Sharemarket down, dollar little changed

5:45 pm on 15 July 2014

The New Zealand dollar is little changed against the currencies of the country's major trading partners.

ANZ Bank senior foreign exchange strategist Sam Tuck said the market was awaiting news from the United States Federal Reserve chair, Janet Yellen, and the results of Fonterra's latest global dairy trade auction later on Tuesday evening.

He said Janet Yellen is expected to keep the status quo and a cautious stance on monetary policy in the US which would free the New Zealand dollar to appreciate.

Mr Tuck said the global dairy trade auction overnight will show the milk price which is expected to decline.

At about 5pm on Tuesday, the kiwi was trading at 88.07 US cents, 93.72 Australian cents, 51.55 British pence, 0.6466 euro, 89.44 yen and 5.47 renminbi.

Shares weaker on Tuesday

New Zealand shares were weaker, the benchmark Top 50 Index shedding 12 points to 5115.

Devon Funds Management portfolio manager Nick Dravitzki said the sharemarket was awaiting the profit reporting season which begins next month.

He said Air New Zealand stock, which has had a great run in the last 18 months or so, was up again on Tuesday.

Mr Dravitzki said The Warehouse continued a poor run and was down again. He said that was probably driven by figures which came out suggesting spending on apparel was down, which is where The Warehouse derives a significant proportion of its earnings.

He said that's been blamed on the recent warm weather and some of the other apparel retailers, such as Hallensteins, were also down.

Shares in Air New Zealand rose 7 cents to $2.07.

Shares in The Warehouse fell 4 cents to $3.07 and shares in Hallenstein Glasson Holdings eased 5 cents to $3.05.