RTTNews - New Zealand's share market opened moderately lower on Wednesday, following a negative overnight lead from the Wall Street where U.S. stocks closed lower on continued economic recovery jitters.

The benchmark NZX 50 index was down 8.66 points or 0.31% to 2,777.48 shortly after the market opened for the day, while the broader NZX All Capital Index declined 7.50 points or 0.26% to 2,835.24.

New Zealand's market went along with the sell-off in most global markets on Tuesday. The benchmark NZX-50 index dropped 39.0 points or 1.4 percent to close at 2,786.15. Turnover was reported by the New Zealand Stock Exchange at 44.2 million shares worth NZ$114.7 million.

Overseas, U.S. stocks turned lower over the course of the trading day on Tuesday after experiencing a strong start on the heels of largely encouraging economic data. The major averages pulled back firmly into negative territory, adding to the steep losses posted in the previous session.

The early strength came after the Commerce Department released a report showing that housing starts rose 17.2 percent to an annual rate of 532,000 units in May from the revised April estimate of 454,000. Economists had expected starts to rise to 485,000 from the 458,000 originally reported for the previous month.

Separately, the Labor Department revealed that producer prices rose 0.2 percent in May. This followed a 0.3 percent increase for April and came in below economist estimates of a 0.6 percent increase.

Meanwhile, the Federal Reserve revealed that industrial production fell by 1.1 percent in May following a revised 0.7 percent decrease in April. Economists had been expecting production to fall 1.0 percent compared to the 0.5 percent drop originally reported for the previous month.

In other news, the Federal Reserve continued its treasury buyback program Tuesday, completing its first quantitative easing move of the week. The New York Federal Reserve purchased $6.45 billion worth of securities with maturity dates ranging from May of 2012 to November of 2013.

The day's buyback saw a total of $31.32 billion in treasuries submitted for the purchase. Overall, the Fed has purchased a total of $162.97 billion since the program began on March 25th.

The major U.S. averages ended the session notably lower, just off their worst levels of the day. The Dow closed down by 107.46 points or 1.3 percent at 8,504.67, the Nasdaq closed down by 20.20 points or 1.1 percent at 1,796.18 and the S&P 500 closed down by 11.75 points or 1.3 percent at 911.97.

Crude oil prices gave back early gains and finished lower for a third straight session on the New York Mercantile Exchange on Tuesday. Oil fell as a drop in global equities raised concerns about the economy and the impact on energy demand.

Light sweet crude oil for July delivery dropped to $70.47, down 15 cents for the session. After hitting as high as $72.77 early, prices touched as low as $69.80, dipping below $70 for the second straight session.

On the currency front, the New Zealand dollar was buying US63.13c by 8am on Wednesday, after climbing to around US63.90c shortly after midnight. The kiwi was at US62.74c at 5pm on Tuesday.

In the early trading on the New Zealand stock market on Wednesday, market leader Telecom added 0.39%, as second ranked Contact Energy fell 0.35% and Fletcher Building, the third best stock, dropped 1.52%.

In the retail sector, Hallenstein Glasson, Pumpkin Patch and Warehouse remained unchanged, as jewelry retailer Michael Hill International gave up 1.45%.

In the energy sector, Vector lost 0.49% as TrustPower remained unchanged in the early trading on Wednesday.

Among the dual listed issues, AMP, Australia and NZ Banking Corp, APN News & Media, Lion Nathan and Telstra remained unchanged in the day's early trading, while Westpac Bank dropped 2.02%.

Among other notable stocks, Infratil, Mainfreight, Nuplex and Steel & Tube Holdings remained unchanged, as Methven gained 0.72%, Sky City declined 0.36% and Sky Network Television slipped 0.70%. Fisher & Paykel Appliances dropped 1.45%, as Fisher & Paykel Healthcare added 0.68%.

The other gainers on Wednesday morning included- Freightways by 0.34%, Goodman Property Trust by 1.18%, Kiwi Income Property Trust by 1.12%, NZ Farming Systems by 2.08%, PGG Wrightson by 0.77% and Rakon by 0.63%.

The major losers in the day's early trading included- Air New Zealand by 0.99%, New Zealand Oil & Gas by 1.85%, New Zealand Refining Company by 0.68%, NZX Limited by 0.52% and Ryman Healthcare by 0.62%.

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