Wellington, Sept 8 NZPA - The New Zealand sharemarket snapped a five-day run higher today when global stock markets eased on renewed fears about the strength of European banks.

The benchmark NZX-50 index closed down 12.963 points, or 0.408 percent, at 3161.177.

In the US, stocks fell in very light volume on Tuesday as investors seized on renewed concerns about European banks as a reason to sell shares after strong gains last week.

Stuart Hardie, investment adviser at Craigs Investment Partners, said the New Zealand market's performance was not too bad considering the direction of foreign markets and the 7.1 magnitude earthquake in Christchurch at the weekend.

The Government today doubled its estimate of the cost of the earthquake to $4 billion.

"Really the market is getting over the South Canterbury Finance collapse and the earthquake in Canterbury. It has done well to look through it," he said.

Fletcher Building rose 1c to 816 and Cavalier Carpets rose 3c to 265. Steel & Tube rose 2c to 242 and Opus Consulting eased a cent to 169. All are expected to provide services in the earthquake ravaged area.

SkyCity fell 10c to 287 after going ex a 9.25c dividend and Ebos fell 18c to 667 after going ex a 17.5c dividend. Air NZ fell 7c to 128 after going ex a 4c dividend.

Telecom was unchanged at 213 and The Warehouse was unchanged at 366.

Contact Energy fell 6c to 568 and Hallenstein Glasson fell 4c to 386. Tower fell 2c to 186 and Tourism Holdings fell 1c to 79.

Pike River Coal fell 1c to 109 and Restaurant Brands fell 4c to 244.

The Dow Jones industrial average fell 107.24 points, or 1.03 percent, at 10,340.69. The Standard & Poor's 500 Index lost 12.67 points, or 1.15 percent, at 1091.84. The Nasdaq Composite Index shed 24.86 points, or 1.1 percent at 2208.89.