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

 


While you were sleeping: Bernanke signals support

While you were sleeping: Bernanke signals support

Feb 27 (BusinessDesk) – US Federal Reserve chief Ben Bernanke and the latest economic data provided the right mix for investors – further stimulus to underpin an accelerating recovery.

Reports on US consumer confidence and the housing market were better than anticipated. The Conference Board's consumer sentiment index rose to 69.6 this month, from a downwardly revised 58.4 in January, while new home sales jumped 15.6 percent to a 437,000 annual pace.

“Housing is now kicking into higher gear,” Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania, told Bloomberg News. “The next few months are still going to be a struggle for households as fuel prices are elevated, but the improvement in confidence reduces the risk of the worst-case scenario.”

Both Home Depot and Macy's provided evidence of strength in their latest earnings and outlook. Shares of Home Depot were last up 5.7 percent, while those of Macy's were last 3.4 percent stronger.

Bernanke's testimony to the Senate Banking Committee in Washington today allayed concern raised last week by the release of the latest Fed meeting minutes that central bank officials might ease or end their record stimulus measures sooner than previously thought.

"We do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery and more rapid job creation," Bernanke said today.

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.83 percent, the Standard & Poor's 500 Index gained 0.29 percent, while the Nasdaq Composite Index added 0.16 percent.

"What Bernanke is saying, bottom line, indicates that there will not be a reversal anytime soon in the stimulus program," Peter Cardillo, chief market economist at Rockwell Global Capital in New York, told Reuters.

The Fed chief also reminded lawmakers that the federal spending cuts set to kick in on March 1 if Congress does not reach agreement to avoid them will hamper the economic recovery.

The good news in the US eased concern about the euro zone as Italy is trying to deal with elections that resulted in a split parliament, which risks hampering progress towards solving its national debt crisis and may reignite Europe's sovereign debt crisis too.

Italy's stocks and bonds dropped. The MIB Index tumbled 4.9 percent. The yield on Italy's 10-year benchmark bond surged 40 basis points.

Europe's Stoxx 600 Index finished the day with a decline of 1.3 percent from the previous close.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news