New Zealand share market opened weaker on Tuesday, following overnight losses on Wall Street where U.S. stocks closed lower on some disappointing corporate news and negative analyst comments.

The benchmark NZX 50 index was down 26.58 points or 1.01% to 2,606.85 shortly after the market opened for the day, while the broader NZX All Capital Index slipped 25.65 points or 0.96% to 2,653.37.

The New Zealand stock market rose along with the rest of the majors in the Asia/Pacific region Monday, extending the rally into a new week. Monday's rally was based mainly on increasing optimism that the worst of the global economic crisis is over and the initiatives of the governments will yield positive results in the near term.

The benchmark NZX-50 index gained 18.96 points or 0.73 percent to 2,633.4, the third straight higher close. The New Zealand Stock Exchange reported trading volume of 37.8 million shares worth NZ$63.3 million. Advancers outnumbered decliners 47 to 30.

Overseas, U.S. stocks regained some ground over the course of afternoon trading on Monday after remaining lower throughout much of the morning. However, all the major averages ended the day lower after closing higher in the four previous sessions.

The notable decline seen in morning trading came as traders cashed in some of the recent gains amid some disappointing corporate news and negative analyst comments.

Sun Microsystems (JAVA) helped to lead the technology sector lower after media reports said that acquisition talks between IBM (IBM) and Sun have collapsed, putting the deal at risk of failure.

Additionally, bank stocks saw notable weakness in reaction to negative comments from veteran banking analyst Mike Mayo, who recently left Deutsche Bank AG to join Calyon Securities. He rated a number of big and regional banks at under perform or sell.

The major U.S. averages showed a notable upward move going into the close but still ended the day in the red. The Dow closed down 41.74 points or 0.5 percent at 7,975.85, the Nasdaq closed down 15.16 points or 0.9 percent at 1,606.71 and the S&P 500 closed down 7.02 points or 0.8 percent at 835.48.

Crude oil dropped again on Monday on the NEW York Mercantile Exchange amid demand worries with stock markets in the red. The drop took prices towards the $50 per barrel mark again. Light sweet crude finished at $51.05, down $1.46 for the session. Prices touched as low as $49.81 in afternoon trading.

Traders looked ahead to the Energy Information Administration's weekly inventory report. Last week's data showed crude oil inventories increased 2.8 million barrels from the previous week. Experts were looking for a build of about 3 million barrels. Total motor gasoline inventories increased 2.2 million barrels last week. A drop of about 1.5 million barrels was expected.

On the currency front, the New Zealand dollar was buying US58.76c by 8 am on Tuesday, after peaking at around US59.75c by1.30pm on Monday. The Kiwi was buying US59.40c by 5pm on Monday.

In the early trading on the New Zealand stock market on Tuesday, market leader Telecom tumbled 3.27%, as second ranked Contact Energy lost 0.84% and Fletcher Building, the third best stock, gave up 1.61%.

In the retail sector Hallenstein Glasson, jewelry retailer

Michael Hill International, and Warehouse remained unchanged, as Pumpkin Patch added 0.94%.

In the energy sector Vector and TrustPower remained unchanged in the early trading on Tuesday.

Among the dual listed issues, AMP fell 1.59%, as Australia and NZ Banking Corp, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged.

Among other notable stocks, Infratil added 0.68%, Mainfreight fell 2.91%, Nuplex slipped 3.03%, Sky City gave up 1.40% and Sky Network Television collected 0.51%, as Methven and Steel & Tube Holdings remained unchanged. Fisher & Paykel Healthcare gained 0.34%, as Fisher & Paykel Appliances fell 2.13%.

The other major losers on Tuesday morning were- Guinness Peat Group by 2.86%, Port of Tauranga Limited by 0.58%, Pike River Coal by 1.27% and Ryman Healthcare Limited by 2.72%.

Apart from Fisher & Paykel Healthcare, Infratil, Pumpkin Patch and Sky Network Television, there were no other gainers among the stocks listed under the NZX-50 index in the early trading on Tuesday.

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