Markets eye China

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.

By mid-afternoon yesterday, the NZX top-50 was up 40 points, or 0.37 per cent, at 10,946. By the close of normal trading, it had fallen a little further, to 0.28 per cent. But by the end of the day, it was down 0.38 per cent.

Strong performers included Augusta Capital, which announced it was subject of a takeover bid, and New Talisman Gold Mines. Decliners included

SeaDragon, Scott Technology and TIL.

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 reopening 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 said.

‘‘Optimism was winning over realism with a look toward 2021.’’ New Zealand and Australian stock markets 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.

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