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

 


While you were sleeping: EU weakness, Greek concern

While you were sleeping: EU weakness, Greek concern

Nov 9 (BusinessDesk) – Stocks on both sides of the Atlantic slid amid renewed concern about the impact of Europe's debt crisis on the global economy after ECB chief Mario Draghi said the euro zone economy is expected to remain weak next year.

In addition, Greece may have to wait until next week to find out if its latest package of cost-cutting measures has satisfied EU demands.

In the US, the latest clues on the outlook for corporate earnings proved disappointing yet again including from MacDonald's which reported a decline in monthly store sales for the first time in nine years.

The latest US economic data were better than anticipated but failed to lift the mood. Initial claims for state unemployment benefits fell 8,000 to a seasonally adjusted 355,000 last week, the Labor Department said.

The monthly trade gap unexpectedly narrowed in September, shrinking to US$41.55 billion, according to the Commerce Department. That's the smallest deficit since December 2010.

"This was a very encouraging report as the improvement in both export and non-petroleum import activity suggests improving demand both domestically and globally," Millan Mulraine, an economist at TD Securities in New York, told Reuters.

In afternoon trading in New York, the Dow Jones Industrial Average declined 0.33 percent, as did the Standard & Poor's 500 Index, while the Nasdaq Composite Index fell 0.56 percent.

In Europe, the Stoxx 600 Index ended the session with a 0.2 percent drop from the previous close. National benchmark indexes in Germany, France and the UK also closed lower. The euro was last 0.2 percent weaker against the greenback.

"Economic activity in the euro area is expected to remain weak," European Central Bank President Mario Draghi said in a statement at the end of the bank's policy meeting.

His comments came a day after the European Commission slashed its forecast for the euro zone to a measly 0.1 percent in 2013, down from a May estimate for 1 percent growth.

Earlier today policymakers at both the ECB and the Bank of England kept their record-low interest rates on hold, at 0.75 percent and 0.5 percent respectively.

While Greek Prime Minister Antonis Samaras secured a parliamentary majority for a package of austerity measures, EU finance ministers may not make a decision on unlocking funds for Greece until late November.

The ministers are waiting for a full report on the country’s compliance with the terms of its bailout, Bloomberg News reported, citing an anonymous European Union official.

As for whether Europe's central bank is prepared to do more for Greece, Draghi told reporters: "The ECB is by and large done."

Greece's benchmark stock index shed 3.8 percent today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news