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

 


While you were sleeping: IMF, Apple lift stocks

While you were sleeping: IMF, Apple lift stocks

Dec 24 (BusinessDesk) – Wall Street rose, pushing the Dow Jones Industrial Average and the Standard & Poor’s 500 Index to fresh record highs, as the International Monetary Fund said it plans to lift its outlook for the US economy.

"Growth is picking up and unemployment is going down,'' IMF Managing Director Christine Lagarde said yesterday on NBC's ‘Meet the Press.’ "So all of that gives us a much stronger outlook for 2014, which brings us to raising our forecast.''

Lagarde did not provide details of the new estimate. In October, the IMF forecast the US economy would grow 2.6 percent in 2014.

She praised the Fed for the way it flagged its plans to begin easing the pace of its monthly bond-buying. Policy makers last week said they will cut back the central bank’s bond purchases to US$75 billion a month from US$85 billion next month.

“We see the Fed having taken some very well communicated action concerning the tapering of the program, and those are good signs, in addition to which we see some good numbers,” Lagarde said.

In afternoon trading in New York today, the Dow gained 0.55 percent, the S&P 500 rose 0.59 percent, while the Nasdaq Composite Index climbed 0.95 percent.

Earlier in the session, the Dow reached an intraday record high of 16,318.11 while the S&P 500 hit a high of 1,829.75.

In 2013 so far, the Dow has gained 27 percent, while the S&P 500 has risen 31 percent and the Nasdaq has added 39 percent. And next year is looking up as well.

“The positive assessment the IMF gave with regard to US growth corroborates the improving economic indicators we have been witnessing,” Konstantin Giantiroglou, head of investment advisory at Neue Aargauer Bank in Brugg, Switzerland, told Bloomberg News. “The sentiment going into Christmas and the New Year is good. We have an improving global economy and for the first time since the financial crisis we should see a synchronous recovery. We should see a continuation of the bull market in 2014.”

The latest reports showed that US consumer spending increased last month, climbing by the most in five months, while the Thomson Reuters/University of Michigan final index of consumer sentiment increased to 82.5 in December, up from 75.1 a month earlier.

Shares of Apple rose, last up 3.3 percent to US$567.19, on its agreement with China Mobile. China Mobile will sell the iPhone 5s and 5c models in its retail stores beginning January 17.

"This is just good news, and a much bigger strategic deal than had been forecast," Oliver Pursche, president of the Suffern, New York-based Gary Goldberg Financial Services, told Reuters. "Apple is incredibly undervalued at this stage, and this deal can help it trade well beyond US$600 early in 2014."

In Europe, the Stoxx 600 Index finished the day with a 0.7 percent gain from the previous close. France’s CAC 40 rose 0.5 percent, Germany’s DAX added 0.9 percent, while the UK’s FTSE 100 climbed 1.1 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news