NZ share market falls more than 1.7% in early trading

Source: Radio New Zealand

The New Zealand share market has returned to losing ways as it's been caught by the negative mood on Wall Street.

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The benchmark NZX 50 index has fallen more than 1.7% in early trading sending it back to levels last seen in early 2020.

It had plunged 165 points on opening.

The market had managed a slight gain yesterday, the first in more than a week.

Read more: GDP fall a sign of 'very tricky' times ahead - Robertson

Wall Street fell as much as 4% overnight and Europe's major markets also slumped as the UK and Swiss central banks raised interest rates.

Aggressive rate rises around the world, including by the US Federal Reserve, which announced its steepest interest rate rise since 1994, have stoked fears of recession.

BNZ head of research Stephen Toplis said New Zealand could be in a recession at the end of 2022 or early 2023.

Although he hoped the recession would be short and shallow, Toplis warned on Thursday the status of other global economies meant there was a danger it could be worse than anticipated.