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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news