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

 


While you were sleeping: China, Greece optimism

While you were sleeping: China, Greek optimism

Nov 23 (BusinessDesk) – Investors opted to focus on good news today, concentrating on data showing Chinese manufacturing expanded in November, even as separate data showed euro-area services and manufacturing output is now the worst in three years.

Underpinning sentiment was confidence by Olli Rehn, the European commissioner for economic affairs, that euro zone finance ministers will reach an agreement on Greece by Monday, releasing the next tranche of aid to avoid the country's financial collapse.

"I trust everyone will reconvene in Brussels on Monday with the necessary constructive spirit, and move beyond the detrimental mindset of red lines," Rehn told European Parliament, according to Reuters.

Meanwhile, a Chinese manufacturing index rose to 50.4 in November from 49.5 last month, HSBC Holdings and Markit said in a report. That marked the first expansion in 13 months and helped bolster hopes that the world's second-largest economy might be in better shape than feared.

"There are questions over whether the Chinese economy is really that bad or if the US will take a long time to recover, but we are getting signs that the situation is not as bad as assumed," Peter Braendle, head of European equities at Zurich-based Swisscanto Asset Management, told Reuters.

In Europe, the Stoxx 600 Index finished the day with 0.6 percent climb from the previous close. France’s CAC 40 gained 0.6 percent, while the UK’s FTSE 100 advanced 0.7 percent and Germany’s DAX climbed 0.8 percent.

And the euro drew heart too. The currency rose 0.4 percent to US$1.2880, after earlier rising as high as US$1.2899.

"Chinese activity has been picking up since September and it’s an indication that the economy has stabilised,” Gopal Agrawal, who helps oversee US$1 billion as chief investment officer at Mirae Asset Global Investments (India), told Bloomberg News.

However, there remains plenty to worry about in the euro zone. A composite index based on a survey of purchasing managers in services and manufacturing industries in the euro zone was little changed at 45.8 in November compared with 45.7 in October, Markit Economics data showed today. Activity has now fallen in 14 of the last 15 months.

“The euro zone economy continued to deteriorate at an alarming pace in November, and is entrenched in the steepest downturn since mid-2009," Chris Williamson, chief economist at Markit, said in a statement.

"While it is reassuring to have seen signs of stabilisation in some survey indicators, the overall rate of decline remains severe and has spread to encompass Germany, suggesting the situation could deteriorate further in the coming months," Williamson said.

Spain, however, managed to draw solid demand for today's debt auction. The nation surpassed its maximum target at a sale of debt due in 2015, 2017 and 2021, selling 3.88 billion euros, compared with a maximum target of 3.5 billion euros, according to Bloomberg.

"It's a clear reflection that sentiment in Spain has improved markedly," bond strategist at RIA Capital Markets Nick Stamenkovic, told Reuters. "They are already funded for 2012 and the market is betting that Spain will ask for a bailout early next year when they face a [wall of issuance]."

Wall Street was closed for the Thanksgiving holiday today. Tomorrow is Black Friday, the biggest sales day for US retailers. Trading in US stocks will resume tomorrow though in a shortened session.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news