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

 


While you were sleeping: Parliament split for Italy?

While you were sleeping: Parliament split for Italy?

Feb 26 (BusinessDesk) – Wall Street declined amid early indications that the outcome of Italian elections calls into question the European Union's ability to lift itself from the sovereign debt crisis and recession.

Polls indicate that the vote in Italy, the euro-zone's third-largest economy, may have left the country with a split parliament. As Pier Luigi Bersani's centre-left coalition won control of the lower house, former prime minister Silvio Berlusconi's party looked set to take the senate, which might jeopardise austerity efforts.

"What we don't want to hear is a renewed fear about a euro-zone fracture," Art Hogan, managing director of Lazard Capital Markets in New York, told Reuters.

In afternoon trading in New York, the Dow Jones Industrial Average fell 0.14 percent and the Standard & Poor's 500 Index slid 0.29 percent. The Nasdaq Composite Index gained 0.15 percent.

Europe's Stoxx 600 Index ended the session with a decline of nearly 0.1 percent, though the region's national benchmark indexes advanced as markets earlier welcomed Bersani's lower house victory on initial exit poll results.

The UK’s FTSE 100 gained 0.3 percent as investors shrugged off Moody's decision, announced late Friday, to strip the nation of its top credit rating.

France’s CAC 40 rose 0.4 percent, Germany’s DAX advanced 1.5 percent, and Italy’s key index climbed 0.7 percent—though at one point in the session it was 4 percent higher.

Signs of a potential Berlusconi grip on the senate accelerated after the markets closed. The euro gave up earlier gains of as much as 1 percent against the greenback, last trading 0.1 percent weaker at US$1.3176, while the yield of Italy's benchmark 10-year bond climbed four basis points to 4.49 percent, after earlier dropping as much as 28 basis points.

“The lower house is probably going to end in the centre-left but the senate is a close call and what we are seeing in the latest polls is that Berlusconi is doing better,” Nicola Marinelli, who oversees US$180 million at Glendevon King Asset Management in London, told Bloomberg News.

“With no one having a majority there is going to be a lot of negotiations and it is not going to be a stable and strong government. When the first exit polls came out, Italian bonds pushed higher, but with the latest numbers everything is reversing rapidly.”

In other news, shares of Chesapeake Energy sank, last down 5.2 percent, after the company agreed to sell a stake in an Oklahoma oilfield to China Petrochemical for less than one-third of its estimated value.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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