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: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news