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

 


While you were sleeping: Economic worry prevails

While you were sleeping: Economic worry prevails

Nov 15 (BusinessDesk) – Stocks on both sides of the pond fell amid a flurry of disappointing economic data including US retail sales and industrial production in the euro zone, underpinning concern about the outlook for corporate profits.

Commerce Department data showed that said US retail sales slid more than expected in October, dropping 0.3 percent following a 1.3 percent gain that was bigger than previously reported in September.

Then there is the uncertainty of the fiscal cliff overhanging the US economy.

President Barack Obama will begin budget negotiations with congressional leaders Friday by calling for US$1.6 trillion in additional tax revenue over the next decade, far more than Republicans are likely to accept and double the US$800 billion discussed in talks with GOP leaders during the summer of 2011, according to the Wall Street Journal.

“The recent wall of worry continues to mount,” Ryan Larson, the Chicago-based head of US equity trading at RBC Global Asset Management (US), told Bloomberg News.

“Middle East geo-political tensions, continued sovereign concerns about Greece and Spain, indecision ahead of the fast-approaching fiscal cliff and the fact that the major US indices continue to trade under key technical levels are all weighing on sentiment.”

In afternoon trading in New York, the Dow Jones Industrial Average fell 0.65 percent, the Standard & Poor's 500 Index dropped 0.46 percent and the Nasdaq Composite Index declined 0.34 percent.

Indeed, the mood in Europe was sombre too. The Stoxx 600 Index fell 0.9 percent. The FTSE 100 shed 1.1 percent, while both Germany's DAX and France's CAC 40 each closed down 0.9 percent.

The latest economic data only pointed to a further slowdown amid the ongoing debt crisis in the euro zone. The region's industrial production sank the most in more than three years in September, dropping a bigger-than-expected 2.5 percent from August, according to the EU's statistics office.

Meanwhile, Greece's economy suffered a contraction for the 17th consecutive quarter, shrinking 7.2 percent in the third quarter from the same period last year.

There were pockets of optimism.

Shares of Cisco received a lift, last up 5.1 percent, from better-than-expected earnings.

Abercrombie & Fitch shares soared more than 27 percent after the teen clothing retailer lifted its full-year forecast.

And Facebook shares climbed 8.8 percent. The latest end to a restriction of share sales by former employees and those who sold at the initial public offering today nearly doubled the total number of shares publicly available, according to Bloomberg.

“Some of the investors are thinking the worst is behind Facebook and now is maybe the time to go long on the stock,” Victor Anthony, an analyst at Topeka Capital Markets in New York, told Bloomberg.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news