Better Tuesday

Writing columns during significant share market upheaval has it’s risks, Tracey Watkins at Stuff yesterday (posted at 13:16):

Is New Zealand immune from the Chinese contagion?

OPINION: Here we go again.

As world share markets slide into a fresh crisis, John Key was quick to reassure on Tuesday that New Zealand has plenty of tools in the tool kit to head off a recession.

Interest rate cuts, bringing forward infrastructure spending, even tax cuts are weapons at the disposal of the Government and Reserve Bank to stimulate the economy. But with memories still raw from the Global Financial Crisis, the biggest threat facing the economy may be one the Government finds harder to head off – a loss of confidence.

Apart from China confidence appears to have recovered by the end of the day with tghe NZX recovering slightly and the Australian stock markey bouncing back by 2%.

Also at Stuff (posted at 18:20):

NZX bounces back after ‘Black Monday’ hangover

“Black Monday” is being followed by “Better Tuesday”.

The Kiwi share market shook off a hangover from “Black Monday” to closer higher on Tuesday amid signs of hope for global markets overnight.

The NZX 50 fell more than 2 per cent within seconds of trading opening on Tuesday.

But stocks staged a recovery which strengthened after the Australian share market showed resilience.

And The Dow Jones looks like in recovery mode too (about an hour until close on the US Tuesday):


And the five year trend shows more of a correction than a crash.


For now at least.

Leave a comment


  1. David

     /  26th August 2015

    Dead cat bounce Pete there is another leg down but there hasn’t been a decent correction in 3 years so we are definitely due one.
    The U.S. And UK are pretty buoyant but the market got ahead of itself, China is just having a bumpy transition to a more balanced western style economy and the world is adjusting to that.

    • Kevin

       /  27th August 2015

      You’re a lot more optimistic about China than I am. But as another commentator pointed out – the West will decouple itself from China so it doesn’t really matter. Unless of course you’re a working age Chinese man having to work to support between ten and fifteen elderly Chinese.

  2. E I E I O......

     /  26th August 2015

    Wonder what the true position is now with Fonterra’s $615M investment last year in China’s Beingmate?

    An old Cockymate rekins it’s already down by over 200 mill 😦


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s