When the Australian share market opened this week, it dropped to a little bit more than 2%. Perhaps the historic downgrade of the credit rating of the United States over the weekend caused this type of reaction in the Australian market. 
Some analysts even predicted that Standard and Poor’s downgrade have affected the behavior of the investors in Australia when the All Ordinaries Index plunged beyond 4%. The index fell to around 91 points after it opened on Monday.
This ordeal somehow passed on to the New Zealand share market when it dropped to more than 3%.
According to Dominique Schwartz, ABC’s New Zealand correspondent, the NZX50 went down to more than 2% during the opening of the week, and unfortunately, it continued to slide.
It eventually went down to 3.3% after 45 minutes of trade. This made billions of $NZ off the top 50 stocks. This kind of reaction from the market came as a surprise to other financial analysts, as they expected that the downfall will much likely happen when bigger markets in Asia and Australia opens.
New Zealand’s Prime Minister, John Key said that “The country’s export trade is vulnerable to economic problems in the US and Europe”.
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