US stocks fell on Monday, prompting close scrutiny on trading on the local New Zealand Exchange (NZX). Photo: RNZ / Angus Dreaver
The New Zealand stock exchange has opened weaker in the wake of a sharp slump on Wall Street.
World financial markets have been volatile after Donald Trump did not rule out the chance of a recession caused by his financial and tariff policies.
US markets had their worst day of the year falling between 2 and 4 percent, with technology stocks hardest hit.
In early trading, the New Zealand market is down about 0.8 percent.
Trading on the New Zealand Exchange (NZX) will be watched closely, after US stocks tumbled overnight, fed by fears of economic fallout after the series of trade tariffs on trading partners that have been announced by Donald Trump.
Local stock movements are expected to reflect the Wall Street falls, RNZ business editor Gyles Beckford said: "In all likelihood there'll be a dip, although the extent of it, we'll have to wait and see."
US stocks sunk, with all three major trading indexes opening on sharp reductions at the start of Monday, as shock waves continue to ripple after US President Donald Trump's controversial tariffs against major global trading partners - and the various responses, which have led to worries about the economic effects that could result.
In a weekend interview, Trump refused to rule out the possibility of recession, saying instead that he expected "a period of transition" for the US economy.
Technology stocks saw the steepest slide, with prices in the red for Alphabet, Amazon, Apple, Meta, Nvidia, Tesla and Palantir.
New Zealand's top 50 index starts just above 12,500, after Monday's 116-point gain - just under 1 percent. And the New Zealand dollar dropped in value slightly, early on Tuesday, compared to major trading partners.
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