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

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news