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

 


While you were sleeping: Ukraine concern heightens

While you were sleeping: Ukraine concern heightens

March 4 (BusinessDesk) – Stocks on both sides of the Atlantic slumped amid increased concern about the growing crisis in Ukraine and the potential for war with Russia.

Russia’s ruble sank to a record low, while the country’s key stock index plunged 11 percent. Diplomatic efforts ramped up on Monday with UK Foreign Minister William Hague visiting Kiev, a day before US Secretary of State John Kerry is to arrive.

In afternoon trading in New York, the Dow Jones Industrial Average dropped 1.28 percent, the Standard & Poor’s 500 Index shed 0.99 percent, while the Nasdaq Composite Index fell 1.23 percent.

Declines in shares of Visa, down 2.3 percent, and those of 3M, down 1.9 percent, led the Dow lower. All 30 members of the index were down.

Some analysts said the decline on Wall Street was partly due because of the recent rally—the S&P 500 had closed at a record high on Friday.

"If you need an excuse to sell, this is a good one," Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey told Reuters.

Some analysts predicted the crisis will not escalate, which will limit the impact on equity markets.

“Our base scenario is that we don’t see an outright escalation,” Peter Garnry, an equity strategist at Saxo Bank in Copenhagen, told Bloomberg News. “The grip on markets should be short lived.”

Others disagreed, expressing concern about a broad and long-term impact.

“The situation in the Ukraine will have a big impact on corporate earnings,” Robert Halver, head of capital-markets research at Baader Bank in Frankfurt, told Bloomberg. “I see no quick solution to the problem. The energy supply to western Europe is at risk at the moment.”

In Europe, the Stoxx 600 Index ended the day with a 2.3 percent slide from the previous close. The UK’s FTSE 100 fell 1.5 percent, France’s CAC 40 retreated 2.7 percent, while Germany’s DAX sank 3.4 percent.

West Texas Intermediate crude soared to a five-month high, rising as much as 2.6 percent.

Bullion also gained as investors looked for a safe-haven investment. Gold futures for April delivery climbed 2.4 percent to US$1,353.80 an ounce.

The accelerating international tension certainly stole the focus from better-than-expected US economic data. The Institute for Supply Management’s index of national factory activity climbed to 53.2 in February, up from 51.3 in January.

Separately, consumer spending rose 0.4 percent in January, following a 0.1 percent increase in December, according to Commerce Department data.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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