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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news