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

 


While you were sleeping: Strong ADP jobs data

While you were sleeping: Strong ADP jobs data

Jan 9 (BusinessDesk) – Wall Street was mixed as solid private jobs data heightened anticipation for the minutes of last month’s Federal Reserve meeting, scheduled to be released later today, to gauge the odds the improving labour market will accelerate the pace of tapering.

In afternoon trading in New York today, the Dow Jones Industrial Average fell 0.48 percent. The Standard & Poor’s 500 Index was steady. The Nasdaq Composite Index rose 0.33 percent. Shares of AT&T and Walt Disney fell, down 1.9 percent and 1.8 percent respectively, leading the Dow lower.

US companies added 238,000 jobs in December, the largest increase since November 2012, and following an upwardly revised 229,000 in November.

“It’s a good number,” Ryan Larson, the Chicago-based head of US equity trading at RBC Global Asset Management (US), told Bloomberg News. “It continues to confirm an improving employment picture.”

The ADP data raised expectations for the monthly government employment report, due to be released on Friday, as well as the overall recovery in the world’s largest economy.

"We're now going to start to see an economic recovery more typical of the economic recoveries we've seen historically," Mark Zandi, chief economist at Moody's Analytics, which jointly develops the report with payrolls processor ADP, told Reuters. "It feels like the jobs market has kicked into a higher gear."

After the last Fed meeting, policy makers said they would cut back the central bank’s monthly bond-buying program to US$75 billion this month, from US$85 billion previously, and investors are keen to read more details on that decision.

"Everyone wants to see what was behind the curtain of the last Fed meeting, to see what parameters were discussed with the taper or rates," Paul Nolte, managing director at Dearborn Partners in Chicago, told Reuters.

Shares of JC Penney sank, last down 8.2 percent, after the department store retailer said in a statement that it was "pleased" with its holiday sales performance, but stopped short of providing details on those sales.

In Europe, the Stoxx 600 Index ended the day with a 0.1 percent increase from the previous close. Germany’s DAX fell 0.1 percent, while the UK’s FTSE 100 dropped 0.5 percent.

Unemployment in the euro zone held steady at 12.1 percent in November, a report showed today. Separately, German factory orders increased a better-than-expected 2.1 percent, which bolstered optimism about the euro-zone’s engine economy.

“The signs are that Germany’s economy will keep expanding strongly in the first half of 2014,” Stefan Muetze, an economist at Helaba in Frankfurt, told Bloomberg News. “That’s good for the entire euro area and will support the region’s recovery this year.”

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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