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

 

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news