New Zealand shares have fallen sharply as fears about rising US interest rates sparked a return to market volatility following a long period of calm. The NZX 50 closed down 2.3 per cent on the day of the Brexit vote. Stephen Bennie, of Auckland fund manager Castle Point, said stocks had been trading in a "remarkably tight range" for some time. The Chicago Board Options Exchange Volatility Index, known as Wall Street's "fear gauge", rose above 17 for the first time in 50 trading sessions on Friday, according to Bloomberg. Bennie said investors were having to "get their heads around" how markets would react to rising interest rates.

Source: Otago Daily Times September 12, 2016 02:03 UTC