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


While you were sleeping: ADP jobs bolster Fed bets

While you were sleeping: ADP jobs bolster Fed bets

Dec 5 (BusinessDesk) – Wall Street fell after stronger-than-expected US private jobs data raised concern the Federal Reserve might begin tapering its bond-buying program sooner than anticipated.

An ADP report showed private employers added 215,000 new jobs to their payrolls in November, the largest increase in a year and comfortably exceeding economists’ expectations. Meanwhile, October's rise was revised to 184,000, up from 130,000.

“The market is on alert for any signs of Fed tapering and these ADP numbers will raise those concerns for investors,” Stewart Richardson, chief investment officer at RMG Wealth Management in London, told Bloomberg News.

Indeed, those data also boosted expectations for Friday’s Labor Department, which was expected to show an increase of 180,000 in nonfarm payrolls, according to a Reuters poll of economists.

"If the ADP does prove to be a good guide, a 200,000 plus gain [in nonfarm payrolls] might just be enough to persuade the Fed to begin its QE taper later this month," Paul Ashworth, chief US economist at Capital Economics in Toronto, told Reuters.

The next two-day meeting of the Federal Open Market Committee begins on December 17.

Policy makers will probably ease the monthly pace of bond buying to US$70 billion at their March 18-19 meeting, according to Bloomberg’s most recent survey of economists conducted on November 8.

In afternoon trading in New York, the Dow Jones Industrial Average fell 0.22 percent, the Standard & Poor’s 500 Index slid 0.23 percent, while the Nasdaq Composite Index edged 0.10 percent lower.

“When the market starts going a bit down, people worry that they’ll lose their year-to-date gains,” Richardson said. “Investors are booking profits going into the year end.”

Other data released today showed that the Institute for Supply Management’s services index fell to 53.9 in November, a slower pace of growth than expected and down from 55.4 in October.

A separate report showed the US trade deficit dropped 5.4 percent to US$40.6 billion in October, while another showed new home sales soared 25.4 percent to a seasonally adjusted annual rate of 444,000 units in October.

In Europe, the Stoxx 600 Index dropped 0.6 percent. The UK’s FTSE 100 slipped 0.3 percent, France’s CAC 40 fell 0.6 percent, while Germany’s DAX declined 0.9 percent.

The latest data here underpinned the fragility of the euro-zone’s economic recovery. The region’s gross domestic product rose 0.1 percent in the third quarter, following a 0.3 percent increase in the previous three months. The economy shrank 0.4 percent from a year earlier.

European Central Bank policy makers meet on December 5, after their unexpected interest rate cut last month.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>


Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>


Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>


Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>


Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>



Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>


'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>


Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>


Get More From Scoop

Computer Power Plus
Search Scoop  
Powered by Vodafone
NZ independent news