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

 


While you were sleeping: Equity rally fades

While you were sleeping: Equity rally fades

Jan 4 (BusinessDesk) – Wall Street held onto yesterday's gains sparked by the US budget deal, but was cautious about extending the rally as attention turned to the next political hot potato overhanging financial markets -- the nation's debt ceiling.

Treasury Secretary Timothy Geithner plans to leave the administration at the end of January, even if President Barack Obama and congressional Republicans haven’t reached an agreement to raise the debt ceiling, Bloomberg reported, citing two people familiar with the matter.

Meanwhile, Moody’s Investors Service warned that the budget agreement won’t cut the deficit enough to prevent a downgrade of the American sovereign credit rating.

Even so, the latest labour report was better than expected. The private sector boosted payrolls by 215,000 in December after adding 148,000 jobs in November, according to the ADP National Employment Report.

Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 372,000 last week, according to Labor Department data. Claims data for nine states was estimated because of the Christmas and New Year holidays.

"The underlying economy has momentum, and the employment data confirms that. The hope and prayer of the market is that our political leaders don't screw it up," John Brady, managing director at RJ O'Brien & Associates in Chicago, told Reuters.

All eyes are now on tomorrow's official government payrolls report for December. The median forecast of economists in a Bloomberg survey projects a gain of 150,000 workers, following an increase of 146,000 in November. The unemployment rate held at 7.7 percent, the lowest since December 2008.

There were positive signs in other parts of the American economy. Car makers received a boost from better-than-expected December sales. Shares of General Motors gained 2.4 percent while those of Ford Motor climbed 3.1 percent.

Some retailers including Costco, Ross and TJX also enjoyed a lift from better-than-expected sales over the December month.

Shares of Gap gained, last up 2.7 percent, after a Wall Street Journal report that it will buy Intermix for US$130 million to enter the luxury women's clothes market.

In afternoon trading in New York, the Dow Jones Industrial Average eked out a gain of 0.04 percent, while the Standard & Poor's 500 Index was up 0.02 percent, and the Nasdaq Composite Index gained 0.07 percent.

In Europe, the Stoxx 600 Index ended the day with a 0.4 percent slide from the previous close. France’s CAC 40 Index and Germany’s DAX both fell 0.3 percent. The UK’s FTSE 100, however, gained 0.3 percent.

Germany's unemployment rose less than economists forecast in December, a sign perhaps that Europe's biggest economy will fare better than some earlier expectations.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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