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


While you were sleeping: Stocks drop on Greece worry

While you were sleeping: Stocks drop on Greece worry

Nov 13 (BusinessDesk) – Equities sank as European finance chiefs met to discuss Greece's newly approved 2013 budget that is seeking to appease conditions by international lenders to secure more funds and avoid defaulting on its debt.

A decision on releasing fresh funds is unlikely to be made today.

A draft document from the European Central Bank, the European Commission and the International Monetary Fund, known as the troika, was obtained by Bloomberg News. Giving Greece a two-year extension to meet budget targets would ease the impact of austerity measures, the troika said.

In Europe, the Stoxx 600 Index ended 0.3 percent lower. Shares dipped in London, Paris, Madrid and Milan. Germany's DAX edged higher on the day.

Trading also was muted on Wall Street, where volume was thinned by the Veterans Day holiday that closed the US bond market.

In afternoon trading in New York, the Dow Jones Industrial Average edged 0.06 percent lower, as did the Nasdaq Composite Index, while the Standard & Poor's 500 Index slipped 0.17 percent.

While equities have suffered from concern about the negative impact of the so-called fiscal cliff on the pace of economic recovery, some say this worry is overblown as they expect agreement on a plan to avoid it.

“It’s astonishing that now the market is turning so quickly and we don’t understand that,” Bettina Mueller, a money manager in Frankfurt at Deutsche Bank's DWS Investments unit, which oversees about US$350 billion, told Bloomberg. “Our expectation regarding the fiscal cliff is that both sides will come to a compromise.”

President Obama has called top Congressional leaders to the White House this week to kick start talks. Failure to agree on a plan would trigger automatic tax increases and spending cuts worth US$607 billion on January 1.

"The markets don't like uncertainty and while the election is over, investors must still deal with the fiscal cliff, the debt ceiling and the unpredictable situation in Europe," Randy Frederick, managing director of active trading and derivatives at Charles Schwab, in Austin, Texas, told Reuters.

"But, keep in mind, the markets are clearly oversold in the short-term and even a hint of resolution on any of these issues could spark a nice bounce," he said.

On the corporate news front, Leucadia National has agreed to buy the rest of Jeffries Group that it doesn't already own at a price that values the investment firm at US$3.6 billion.

The International Energy Agency has revamped its forecasts and now says that the US is poised to become the world's largest oil producer – ahead of Saudi Arabia – in four years, reflecting the recent surge in shale gas production.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news