Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: East Asian slowdown takes toll

While you were sleeping: East Asian slowdown takes toll on Wall St, Europe

Oct. 9 (BusinessDesk) - Stocks on Wall Street and in Europe retreated after the World Bank cut its growth forecast for East Asia, sparking fears the global slowdown is snowballing, and as US quarterly earnings season looms.

The World Bank trimmed this year's forecast for growth in the emerging East Asian economies amid dwindling demand for the region's exports as global powerhouses in the US and Europe tidy up their own affairs. It sees growth in the region of 7.2 percent this year from 8.3 percent in 2011, the slowest pace since 2001.

That helped push stocks lower on both sides of the Atlantic, with the Standard & Poor's 500 index down 0.4 percent to 1455.72 in afternoon trading in New York, the Dow Jones Industrial Average down 0.3 percent to 13576.7, and the Nasdaq Composite Index down 0.8 percent to 3109.84.

Germany's Dax 30 index fell 1.4 percent to 7291.21, France's Cac 40 index declined 1.5 percent to 3406.53, and Britain's FTSE 100 index decreased 0.5 percent to 5841.74.

"There is just a lot of uncertainty out there, so any little thing right now tends to be a bit of a drag. Some of it is China, some of it may be concerns about Europe again," Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois told Reuters.

The deteriorating outlook for East Asia comes a day before US third-quarter earnings season, which kicks off tomorrow when aluminium producer Alcoa reports. Analysts expect Alcoa will report a break-even result, and the stock was unchanged at US$9.09.

Investors have been cautious about the US earnings season as European leaders muddle their way through their region's debt crisis and Chinese growth slows from the heady heights of recent years. Shares of Hewlett-Packard slumped last week after the company predicted profit for fiscal 2013 will fall short of expectations.

"Some people are predicting that we may see an overall decline in earnings, so there may be some defensive posturing and profit-taking," Jankovskis said.

Across the pond Eurozone finance ministers announced a full-time 500 billion euro fund to help bail-out debt-ravaged nations is operational, while saying Spain doesn't need a rescue package. The yield on Spain's 10-year government bond has fallen to 5.71 percent from as high as 7.62 percent on July 24. The euro fell 0.5 percent to US$1.267.

"Spain is also suffering under the problem of contagion, like other countries, from speculation that’s the result of the uncertainty surrounding the euro area as a whole," German Finance Minister Wolfgang Schaeuble told reporters as he arrived at a meeting in Luxembourg. "But Spain doesn’t need an assistance program."

The finance ministers met in Luxembourg to discuss Spain's finances and closer cooperation on banking, ahead of German Chancellor Angela Merkel's visit to Greece tomorrow.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news