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

 


World Week Ahead: US data drop to set the tone

World Week Ahead: US data drop to set the tone

By Margreet Dietz

Jan 28 (BusinessDesk) – Investors will look to corporate earnings, jobs data and a meeting of US Federal Reserve policy makers for further clues that the world's largest economy is recovering at a stronger-than-anticipated pace.

Wall Street closed the week at the highest levels since 2007 on better-than-expected earnings and economic data, and as the US Treasury won a three-month reprieve from hitting the debt ceiling.

Also adding to optimism is the expectation that Europe's banks will this week repay more of the emergency loans they were required to take from the European Central Bank at the height of the debt crisis, a sign that a corner has been turned.

A slew of reports on the US economy are due this week. The highlight will be January's jobs report. The US added 155,000 jobs this month, a report from the Labor Department due Friday is forecast to show.

The pace of jobs growth averaged 153,000 in 2012, according to Bloomberg data.

Other data due in the coming days include reports on durable goods orders, due Monday, consumer confidence, due Tuesday, as well as ADP employment and gross domestic product, both due Wednesday.

The Federal Open Market Committee holds its first two-day meeting of the new year, starting on Tuesday. The focus will be on whether there is any signal that the central bank is leaning toward ending asset purchases – perhaps later this year.

Companies reporting their latest earnings in the coming days include Yahoo!, Caterpillar, Seagate Technology, Amazon.com, Ford Motor, VMWare and Pfizer.

Standard & Poor's 500 Index companies that have reported quarterly results so far this earnings season have averaged a 7.7 percent rise in profit on 5.2 percent revenue growth, according to Reuters.

In the past week, the Dow Jones Industrial Average rose 1.8 percent while the S&P 500 climbed 1.1 percent, both extending gains to their highest levels in five years.

On Friday, the S&P closed at 1,502.96.

"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey, told Reuters. "That may be the start of a rise that could take equities near 1,800 within the next few years."

The most recent Reuters poll of Wall Street strategists estimated the S&P 500 would rise to 1,550 by year-end, not far off its all-time intraday record of 1,576.09 touched on October 11, 2007.

In Europe, the Stoxx 600 Index increased 0.9 percent last week, closing at the highest level in almost two years.

Italy is set to auction as much as 6.75 billion euros of notes due 2014 and inflation-linked securities due 2018 on January 28, while Finland is scheduled to sell 1 billion euros of 2028 securities the next day and Germany will offer 2 billion euros of 30-year bunds on Wednesday, according to Bloomberg.

On the commodity front, Fonterra chief Theo Spierings reiterated that the products of the world's largest dairy exporters are safe. Last week low levels of the chemical DCD were found in some products.

“We have strong science and we are providing assurances about the safety of our product,” Spierings said according to an e-mailed statement to Bloomberg. “Our testing has found only minute traces of DCD in samples of some of our products. Our products are safe. Customers can rest assured.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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