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

 


While you were sleeping: Stocks embrace budget deal

While you were sleeping: Stocks embrace budget deal

Jan 3 (BusinessDesk) – Equity markets on both sides of the Atlantic rallied on the first day of trading in 2013, buoyed by a US budget agreement that eliminated tax increases that might have tipped the world's No. 1 economy into recession.

In afternoon trading in New York, the Dow Jones Industrial Average gained 1.67 percent, the Standard & Poor's 500 Index climbed 1.74 percent, and the Nasdaq Composite Index rallied 2.16 percent.

“We’re re-valuing the market based on what’s closer to the underlying economy and most of the economic reports have been pretty good,” James Paulsen, the chief investment strategist at Minneapolis-based Wells Capital Management, told Bloomberg News.

Indeed, a report showed that manufacturing in the US increased more than expected in December. The Institute for Supply Management's factory index climbed to 50.7 from 49.5 in November.

Markit's US Manufacturing Purchasing Managers Index rose to 54.0 last month from 52.8 in November.

"With recent indications that growth is also picking up in other key economies around the world, notably in emerging markets such as China and Brazil, and that the euro zone's economic crisis is easing, US companies should benefit as stronger demand lifts exports in early 2013," according to Markit chief economist Chris Williamson.

To be sure, Commerce Department data showed that spending on US construction projects suffered a surprise decline in November.

Bank shares advanced. US regulators led by the Office of the Comptroller of the Currency will replace a largely fruitless effort to find victims of botched foreclosures at the 14 biggest mortgage servicers with flat penalties, Bloomberg reported, citing five people briefed on the talks.

Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are among servicers that may make concessions totaling about US$10 billion, Bloomberg reported.

Shares of Bank of America gained 3.3 percent, Wells Fargo rose 2 percent, JPMorgan Chase advanced 1.6 percent, while those of Citigroup were up 3.6 percent.

Meanwhile, shares of Zipcar soared, last up 48.3 percent, after Avis Budget Group said it would buy the company for about US$500 million in cash. Shares of Avis also gained, last up 4.7 percent.

The American budget deal also buoyed stock markets in Europe, even as Markit data showed euro-zone manufacturing output contracted more than initially estimated in December.

The Stoxx 600 Index finished the day with a 2 percent advance from the previous close on December 31. Benchmark stock indexes in London and Frankfurt also rose, each gaining 2.2 percent, while Paris climbed 2.6 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news