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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news