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

 


CORRECT: While you were sleeping: European stocks advance

CORRECT: While you were sleeping: European stocks advance

(Corrects number in 12th paragraph)

Feb 18 (BusinessDesk) – European stocks climbed as Chinese credit data provided reason for optimism about the outlook for the world’s second-largest economy.

Commodities including silver and copper also gained, as the US dollar weakened amid expectations the Federal Reserve won’t need to raise interest rates any time soon with data that have recently surprised more on the downside, than the upside.

China’s new credit climbed to a record in January, with aggregate financing rising to 2.58 trillion yuan (US$425 billion) last month, according to the People’s Bank of China.

“The better-than-expected credit data out of China gives the markets some support,” Benno Galliker, a trader at Luzerner Kantonalbank in Lucerne, Switzerland, told Bloomberg News. “There are fears that the measures taken by China are hitting the breaks too hard and that the economy won’t grow as fast anymore. Today’s numbers speak a different language.”

In Europe, the Stoxx 600 Index finished the session with a 0.4 percent gain from the previous close. France’s CAC 40 slipped 0.1 percent, while Germany’s DAX inched lower as well.

The UK’s FTSE 100 climbed 1.1 percent amid further signs the country’s economic recovery is gathering steam. Shares of Hammerson rose, closing 3.1 percent higher, after the company posted earnings that pleased investors and bolstered confidence about the outlook for UK corporate profits.

“When you look at property, it’s always a great barometer for confidence,” Mike McCudden, head of derivatives at Interactive Investor, told Reuters. “When you see the likes of [Hammerson] coming out with good numbers it perks up the whole market.”

Copper rose, advancing 0.6 percent on the London Metal Exchange, as did silver and gold.

Some believe gold will likely continue its recent climb, beginning its recovery from last year’s slump and rising to the highest level in three months today.

“It is the insurance product against further emerging market turmoil, more bad US data, potentially too frothy equity markets and unforeseen market shocks,” UBS analysts wrote in a report, according to Bloomberg News. “With positioning so light and the sentiment turn in gold’s favour so recent, we expect that gold will remain bid.”

US markets were closed on Monday for the Presidents’ Day holiday.

On Wednesday, minutes of the January FOMC meeting will be released, and investors will comb them for further clues about outlook for the Fed’s plans to taper its bond-buying programme, now at US$65 billion a month.

Later today the Bank of Japan will conclude a regularly scheduled two-day policy meeting. The focus will be on Governor Haruhiko Kuroda’s comments on the outlook for the nation’s economy.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news