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

 


While you were sleeping: Optimism lifts global shares

While you were sleeping: Optimism lifts global shares

Nov 20 (BusinessDesk) – Equities on Wall Street and in Europe advanced as the string of good news on the US housing market continued, while optimism grew that a deal to avoid the so-called fiscal cliff and safeguard the world's largest economy will be reached.

Investors welcomed separate reports showing a surprise gain in US home resales in October and a climb in homebuilder sentiment in November.

"The housing market is continuing to improve. It's probably improving more than most economists were projecting earlier this year," Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts, told Reuters.

That is good news at a time when US lawmakers are in talks to prevent automatic tax increases and spending cuts from kicking in on January 1. The mood has been optimistic since discussions began late last week.

“I am confident we can get our fiscal situation dealt with,” President Barack Obama said yesterday at a news conference in Bangkok, according to Bloomberg News.

Indeed, some argue that the failure to reach an agreement that will prevent the fiscal cliff is a price the US economy cannot afford to pay.

Fitch said falling over the fiscal cliff could trigger a second recession and push the nation's jobless rate above 10 percent. The ratings agency said it did not expect Congress to allow the tax and spending cuts to kick in, given their "far-reaching effects."

Still, some are rather safe than sorry. Wal-Mart Stores opted to fast-track its planned dividend into late December from early January. "There are complex fiscal and federal tax rate issues that may not be resolved in the next few weeks, despite the ongoing good faith negotiations between the administration and Congress to resolve details related to the fiscal cliff," Wal-Mart said in a statement.

Earnings also provided good news. Shares of Lowe's Cos gained, last up 6.3 percent, after the company posted quarterly profit that exceeded expectations and lifted its full-year sales forecast.

Meanwhile, Intel said today that Chief Executive Officer Paul Otellini will retire in May.

“They need someone with a strong understanding of the mobile landscape to guide them for the next six to eight years,” Patrick Wang, an analyst at Evercore Partners, told Bloomberg. “They’d be in great shape if they were to add significant mobile expertise to that management team.”

In afternoon trading in New York, the Dow Jones Industrial Average rose 1.39 percent, while the S&P 500 Index gained 1.70 percent and the Nasdaq Composite Index climbed 1.83 percent.

In Europe, the Stoxx 600 Index ended the day with a 2.2 percent advance on the previous close. Stocks in Paris, Frankfurt and London also rose, climbing 2.9 percent, 2.5 percent, and 2.4 percent respectively.

Oil prices rose to the highest level in four weeks amid the increasingly escalating conflict in the Middle East. Crude for January delivery was last up 2.8 percent to US$89.37 a barrel on the New York Mercantile Exchange.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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