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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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