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

 


While you were sleeping: Wall Street mixed before Fed

While you were sleeping: Wall Street mixed before Fed

Dec 19 (BusinessDesk) – The focus was squarely on the end of the Federal Open Market Committee’s two-day meeting and policymakers’ take on whether the strength of the world’s largest economy warrants an easing of stimulus.

The FOMC is scheduled to release a statement at 2pm in Washington, followed by Fed Chairman Ben Bernanke’s news conference at 2.30pm.

Opinions are widely divided on whether policymakers will announce a start to easing their monthly bond-buying today.

“We expect tapering in the first quarter of next year," Jim Russell, senior equity strategist at US Bank Wealth Management, told Reuters. “Today's announcement will be whether they will signal that today or wait until Janet Yellen becomes Fed chief.”

Yellen will succeed Bernanke when his term expires at the end of January.

In afternoon trading in New York, the Dow Jones Industrial Average gained 0.04 percent. Gains in shares of Exxon Mobil and Chevron outweighed declines in shares of Microsoft and Boeing, lifting the Dow.

The Standard & Poor’s 500 Index fell 0.09 percent, while the Nasdaq Composite Index dropped 0.51 percent.

There were more signs of strength in the US economy. Housing starts soared 22.7 percent to a 1.09 million annualised rate, the highest since February 2008, according to Commerce Department data.

“The economy seems to be picking up and there’s quite a lot of pent-up demand,” David Sloan, a senior economist at 4Cast in New York, told Bloomberg News. “Even if the Fed does start to taper, I think the housing market will prove resilient.”

Indeed, some said the Fed should begin easing its pace of bond-buying now.

"The last piece of the economic puzzle is falling into place and the expansion is assured. The last argument against tapering fell today, let's hope the Fed hears the news," Chris Rupkey chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York, told Reuters.

Meanwhile shares of FedEx, considered an economic bellwether, were flat at US$139.05 after the company posted net income that fell short of analysts’ estimates, even as it lifted the range of its full-year earnings forecast.

FedEx is “on track to be where we need to be by the end of 2016,” FedEx Chief Financial Officer Alan Graf said on a conference call with analysts and investors, Bloomberg reported. “We are managing very aggressively the tradedown in international.”

In Europe, the Stoxx 600 Index finished the session with a 0.9 percent increase from the previous close. The UK’s FTSE 100 eked out a 0.1 percent gain, while France’s CAC 40 climbed 1 percent and Germany’s DAX added 1.1 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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