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

 


While you were sleeping: Alcoa lifts stocks, outlook

While you were sleeping: Alcoa lifts stocks, outlook

Jan 10 (BusinessDesk) – Equities in the US and Europe rose after Alcoa's better-than-expected fourth-quarter revenue helped bolster optimism that US corporate results might beat expectations, albeit low ones, and that China will add lustre to the global economy.

The aluminum producer also predicted worldwide demand for aluminum will accelerate to 7 percent in 2013. Shares of Alcoa gained, last up 0.2 percent at US$9.12 after earlier rising as high as US$9.33.

Commodities also benefitted. Aluminum for delivery in three months rose 1.7 percent on the London Metal Exchange.

“Alcoa’s results were good, especially the revenue numbers and forward guidance, as was the comment that demand in China is coming back,” Manish Singh, head of investment at Crossbridge Capital in London, told Bloomberg News.

The current earnings quarter was shaping up like the previous one, with companies lowering expectations in recent weeks, James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania, told Reuters.

"So the big question and focus is on revenue, and Alcoa had better-than-expected revenue," Dailey said.

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.57 percent, while the Standard & Poor's 500 Index gained 0.40 percent, and the Nasdaq Composite Index advanced 0.49 percent.

Investors' appetite for the US Treasury's auction of US$21 billion sale of 10-year notes today was not as good as anticipated.

The notes drew a yield of 1.863 percent, compared with a forecast of 1.849 percent in a Bloomberg News survey of eight of the Federal Reserve’s primary dealers. The bid-to-cover ratio was 2.83, compared with an average of 3 for the previous 10 sales.

Yesterday's auction of US$32 billion of three-year securities drew a record high direct bid, according to Bloomberg.

Meanwhile, US President Barack Obama will on Thursday nominate White House chief of staff Jack Lew to be his next Treasury secretary, Reuters reported, citing a source familiar with the matter. If confirmed by the Senate, Lew will replace Timothy Geithner.

And Morgan Stanley, the sixth-largest US bank by assets, plans to eliminate about 1,600 jobs from its investment bank and support staff in coming weeks, Bloomberg reported, citing a person familiar with the matter. The bank's shares were last down 0.7 percent.

Europe's Stoxx 600 Index finished the day with a 0.7 percent climb from the previous close. National benchmark stock indexes in London, Paris and Frankfurt rose too, closing with gains of 0.7 percent, 0.3 percent and 0.3 percent respectively.

Policy makers at the European Central Bank are expected to hold the key interest rate at a record-low 0.75 percent tomorrow.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news