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

 


While you were sleeping: Wall Street extends rise

While you were sleeping: Wall Street extends rise

Feb 28 (BusinessDesk) – Wall Street rallied for a second day as stronger-than-expected reports on US business spending and the housing market bolstered optimism about the sustainability of the economic recovery.

In afternoon trading in New York, the Dow Jones Industrial Average advanced 0.94 percent, the Standard & Poor's 500 Index added 1.09 percent, while the Nasdaq Composite Index climbed 1.14 percent.

Orders for durable goods excluding transportation equipment posted their biggest gain in a year, suggesting further strength ahead.

"The encouraging tone of this report suggests that the business sector is beginning to feel sufficiently confident about the improving economic outlook to commit to investment activity," Millan Mulraine, a senior economist at TD Securities in New York, told Reuters.

Separately, the National Association of Realtors said its pending home sales index climbed 4.5 percent to 105.9 in January, the highest reading since April 2010, from a downwardly revised 101.3 in December.

Declining inventory is the key to this year's housing market outlook, according to NAR.

"Favourable affordability conditions and job growth have unleashed a pent-up demand," Lawrence Yun, NAR chief economist, said in a statement. "Most areas are drawing down housing inventory, which has shifted the supply/demand balance to sellers in much of the country. It's also why we're experiencing the strongest price growth in more than seven years."

In Europe, the mood was buoyed by indications that confidence in the euro zone rose more than expected in February. An index of executive and consumer sentiment increased to 91.1 from a revised 89.5 in January, according to the European Commission.

Europe's Stoxx 600 Index climbed 0.9 percent from the previous close. The UK’s FTSE 100 rose 0.9 percent, Germany’s DAX Index increased 1 percent, while France’s CAC 40 jumped 1.9 percent. The euro strengthened 0.3 percent against the greenback and 0.1 percent against the yen.

Nerves about the outcome of Italy's elections appeared to have settled, as Italy’s benchmark stock index advanced 1.8 percent, while investors bought 6.5 billion euros of five- and 10-year of new debt auctioned by the country today.

“The auction has cleared with strong demand and better-than-expected yield levels,” Owen Callan, an analyst at Danske Bank in Dublin, told Bloomberg. There is “very strong demand for the 10 year in particular, which is encouraging. It shows that fears of a rapid disintegration of investor sentiment toward Italy may be overstated.”

Meanwhile, PIMCO's Bill Gross warned that gains in debt might be limited.

“Corporate credit and high yield bonds are somewhat exuberantly and irrationally priced,” Gross wrote in a note published on PIMCO's website. “Spreads are tight, corporate profit margins are at record peaks with room to fall, and the economy is still fragile.”

"Still that doesn’t mean you should vacate your portfolio of them."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

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