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

 


While you were sleeping: Focus on Yellen

While you were sleeping: Focus on Yellen

Feb 11 (BusinessDesk) – Wall Street began the week lower as investors awaited Tuesday’s testimony of the US Federal Reserve’s new chairman, Janet Yellen, to gauge the central bank’s take on the recent weakness in employment data and the overall outlook for the US economy.

Yellen, who took the helm on February 1, will provide the Fed’s semi-annual testimony to the House Financial Services Committee tomorrow and the Senate Banking Committee on Thursday.

The most recent monthly government employment data were disappointing, as the growth of payrolls was far short of expectations in both December and January.

While severe winter weather is partly, perhaps largely, to blame, improvement in the labour market was a key driver for US policy makers to start reducing their monthly bond purchases, announcing a downgrade of US$10 billion each after the most recent FOMC meetings in December and January respectively.

“Markets are just looking to Yellen’s testimony this week—that’s going to be the key event,” Geoffrey Yu, senior currency strategist at UBS in London, told Bloomberg News. Markets may be on a “defensive tone because she’s got to acknowledge some weak figures of late.”

Overall, investors have remained optimistic about the US economic outlook, as well as for corporate profits.

In afternoon trading in New York, the Dow Jones Industrial Average fell 0.14 percent, while the Standard & Poor’s 500 Index slipped 0.08 percent. The Nasdaq Composite Index added 0.31 percent.

The S&P 500 could reach 1,900 in the next quarter, money manager Laszlo Birinyi told Bloomberg. “We’ve had a little bit of a detour and the road isn’t as smooth as it has been, but we still think the rally is intact,” Birinyi said.

US Treasuries moved higher, pushing the yield on the 10-year bond 1 basis point lower to 2.67 percent.

Slides in shares of UnitedHealth, last 2.1 percent weaker, and those of Exxon Mobil, last 1.1 percent lower, led the decline in the Dow.

Shares of McDonald’s also fell, last down 0.9 percent, as the company reported a decline in same-store sales for the third straight month citing “broad-based challenges including severe winter weather.”

Meanwhile, shares Apple gained, last up 1.9 percent, after Carl Icahn dropped his call for the company to buy back US$50 billion of its shares.

In Europe, the Stoxx 600 Index finished the session with a gain of less than 0.1 percent from the previous close. France’s CAC 40 rose 0.2 percent, while the UK’s FTSE 100 added 0.3 percent. Germany’s DAX slipped 0.1 percent.

Here, shares of L’Oreal, up 4.5 percent, helped boosted the market. Nestle was said to explore ways to reduce its 29 percent stake in the biggest cosmetics maker, Bloomberg News reported.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news