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

 


While you were sleeping: Equities present value

While you were sleeping: Equities present value

June 26 (BusinessDesk) – Stocks on both sides of the Atlantic advanced as investors found value after the recent slump and fresh assurances from central bankers in both China and the US.

US economic data provided evidence of further strength, as reports on durable goods orders, sales of new homes, home prices and consumer confidence all beat analysts' expectations. Also helping was a promise from China’s central bank that it will keep money-market rates at a “reasonable” level.

In late afternoon trading in New York, the Dow Jones Industrial Average gained 0.73 percent, the Standard & Poor's 500 Index rose 1 percent and the Nasdaq Composite Index advanced 0.68 percent.

In Europe, the benchmark Stoxx 600 Index climbed 1 percent from the previous close. The UK's FTSE 100 increased 1.2 percent, France’s CAC 40 rose 1.5 percent and Germany’s DAX closed with a 1.6 percent gain.

"There's a lot of great buying opportunities that were created in the last few days and I think investors will step in and take advantage of that," Keith Bliss, senior vice-president at Cuttone & Co in New York, told Reuters.

The S&P 500 closed at the lowest level in nine weeks on Monday amid concern about the Federal Reserve's plans to start tapering its stimulus program if the US economy strengthens in line with the central bank's forecasts.

There was plenty of evidence of a sustainable recovery today. The Conference Board’s index of consumer confidence rose to 81.4 in June from 74.3 in May. Durable goods orders gained 3.6 percent last month, while sales of new homes increased more than forecast in May, climbing to the highest level in almost five years, and home prices rose more than forecast in the 12 months through April.

"The economy is leaning forward and the data underscore that it is time for the Fed to begin to move away from expanding its balance sheet," Steve Blitz, chief economist at ITG Investment Research in New York, told Reuters.

That's good news for the US dollar. The greenback rebounded from an earlier drop of 0.2 percent, strengthening 0.2 percent to US$1.3089 per euro.

US Treasuries fell, pushing yields on the 10-year bond up six basis points to 2.59 percent. Still, the US sold US$35 billion of two-year debt at a better-than-expected yield of 0.430 percent.

"The market is moving to higher yields, and the short end is following along,” Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York, which as a primary dealer is obligated to bid at US government debt auctions, told Bloomberg News.

The US will auction US$35 billion of five-year notes on Wednesday, followed by US$29 billion of seven-year bonds on Thursday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news