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

 

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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