Markets eye China

New Zealand and Australian stockmarkets could be in for more volatility as concerns rise about another Covid-19 outbreak in China.

According to AAP, Beijing has locked down 11 residential communities near a wholesale food market after 45 workers tested positive to Covid-19.

The market will also have an eye on Wall St, where US stocks took their biggest plunge in three months last Thursday, with the S&P-500 falling nearly 6 per cent.

New Zealand’s sharemarket followed suit, dropping 2.23 per cent on Friday, but opening up 1.23 per cent yesterday to reflect a late rally on Wall St after the New Zealand market closed on Friday night.

By mid-afternoon yesterday, the NZX top-50 was up 40 points, or 0.37 per cent, at 10,946 – and remained around that point. Strong performers during the day included Augusta Capital, which announced it was subject of a takeover bid, and New Talisman Gold Mines.

Wall St’s rollercoaster ride was said to reflect a growing realisation that economic recovery would not be as swift as investors hoped. Optimism about the reopening of the US economy has come up against a rising number of coronavirus infections.

‘‘This is a battle of optimism and realism that’s been playing out over the last three months,’’ Adam Taback, chief investment officer for Wells Fargo Private Wealth Management told AP. ‘‘What chairman of the US Federal Reserve] Jerome Powell exposed is 2021 is not enough time. It’s likely 2022 or even 2023 before we will see ourselves get back to normal.’’

Jobs are on the line at childcare service provider Kindercare despite the company receiving more than $7.4 million in wage subsidies.

The company received the Government handout for 1171 staff. But it had not proved sufficient to retain all jobs.

Kindercare chief executive Kelly Wendelborn said the wage subsidy was ‘‘pivotal’’ for the company. ‘‘However like many organisations, we are assessing how we financially navigate these next few months and years,’’ Wendelborn said.

He would not confirm how many jobs might be affected but said two proposals were before ‘‘some members’’ of its support teams. ‘‘Not only is this in the consultation stage, it is also highly sensitive, personal and has the potential to affect the livelihoods of those involved, so I am not able to go into detail, while we seek their valuable feedback and suggestions on our proposals,’’ Wendelborn said.

Kindercare Learning Centre has branches in Auckland, Wellington, Christchurch and Hamilton.