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

 

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