Pavan Sharma

Traders remain on edge after Friday’s rout which was driven by renewed worries of a slowdown in global economic growth.

Stock is looking to retest key support

Global markets sold off sharply on Friday, as investors dumped shares on Wall Street (which experienced the worst trading day since the 3rd of Jan) as weak factory data from the United States and Europe led to an inversion of US Treasury yields, fuelling

NZ economic growth (GDP) data released yesterday showed the economy grew less than the central bank expected in the fourth quarter but economists don’t expect the data to spur any change in the Reserve Bank’s message at next week’s policy review.

The Fed this morning sent a dovish message to the market which it wanted, as the accompanying economic projections signalled policymakers don’t expect to lift rates again this year.

The path for the RBA is not clear cut, and economists have noted the strong tension between employment and economic growth in the minutes from the March meeting.