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

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news