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

 


While you were sleeping: Manufacturing lifts stocks

While you were sleeping: Manufacturing lifts stocks

Dec 17 (BusinessDesk) – Investors found value in equities on both sides of the Atlantic after the recent slide amid concern US Federal Reserve policy makers might start easing back their bond-buying program in a two-day meeting starting on Tuesday.

The latest economic data added to signs of strength in the world’s biggest economy. US industrial production increased 1.1 percent in November, following a revised 0.1 percent gain in October previously reported as a fall. Last month’s rise was the biggest in a year.

Separately, the Fed Bank of New York’s general economic index climbed to 1 in December, up from minus 2.2 last month.

"The outlook for 2014 is going to be bright,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York, told Reuters. “The economy has reached escape velocity and, with numbers like these, the Fed better start recalibrating."

The Federal Open Market Committee meets on December 17 and 18.

A potential taper announcement this week should not hurt markets, Trevor Greetham, director of asset allocation at Fidelity Worldwide Investments in London, told Bloomberg News.

“They’re letting up on the accelerator, not braking,” Greetham said.

In afternoon trading in New York, the Dow Jones Industrial Average climbed 0.87 percent, the Standard & Poor’s 500 Index rose 0.68 percent, while the Nasdaq Composite Index advanced 0.75 percent.

Gains in shares of IBM, last up 3 percent, and those of Exxon Mobil, last up 2.4 percent, propelled the Dow higher.

Still, most analysts and investors still expect the Fed will hold off on tapering until 2014.

"I still believe January or March are more likely, but the round of profit taking seen from December 10 through December 12 point to growing concerns," Randy Frederick, managing director of active trading and derivatives at the Schwab Center for Financial Research, told Reuters. "There is little consensus whether good news is good or bad right now, with the indicators that I watch showing everything from fully bearish to fully bullish."

In Europe, the Stoxx 600 Index gained 1.3 percent from the previous close, as did the UK’s FTSE 100. France’s CAC 40 jumped 1.5 percent, while Germany’s DAX added 1.7 percent.

Here too, there were reasons for optimism about the economic recovery, albeit cautious. Markit’s index based on a survey of purchasing managers in the manufacturing industry climbed to 52.7 in December, up from 51.6 in November.

“The rise in the PMI after two successive monthly falls is a big relief and puts the recovery back on track,” Chris Williamson, chief economist at Markit, said in a statement. “The upturn means that, over the final quarter, businesses saw the strongest growth since the first half of 2011, and have now enjoyed two consecutive quarters of growth.”

“On the downside, the PMI is signalling a mere 0.2 percent expansion of GDP in the fourth quarter, suggesting the recovery remains both weak and fragile,” Williamson said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

Earlier:

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>>

ALSO:

'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>>

ALSO:

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>>

ALSO:

Efficiency: Businesses And Households To Save From New Energy Plans

Minister of Energy and Resources Simon Bridges today announced three energy efficiency initiatives to improve business productivity, save money and reduce carbon emissions. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news