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

 


While you were sleeping: Putin backs off, lifts mood

While you were sleeping: Putin backs off, lifts mood

March 5 (BusinessDesk) – Wall Street rallied, pushing the Standard & Poor’s 500 Index to a record high, as Russian President Vladimir Putin said he would not invade Ukraine for now, easing concern the crisis would escalate into an international conflict.

“Clearly Putin would like to lower some of the rhetoric,” Paul Denoon, who oversees US$29 billion of emerging-market debt at New York-based AllianceBernstein Holding, told Bloomberg News. “But I don’t think he’s signalled a new direction in his intentions. We still think there’s a risk of escalation.”

In afternoon trading in New York, the Dow Jones Industrial Average rose 1.34 percent, the Standard & Poor’s 500 Index gained 1.42 percent, while the Nasdaq Composite Index climbed 1.80 percent. The S&P 500 climbed as high as a record 1,873.27.

Gains in shares of Walt Disney, up 2.9 percent, and those of American Express, up 2.1 percent, propelled the Dow higher. All 30 stocks in the index advanced.

Bonds fell, as the need for perceived safe-haven investments dropped. Yields on the US 10-year bond climbed seven basis points to 2.67 percent.

“Our investment process thesis long-term has not changed,” Tom Stringfellow, president and chief investment officer of San Antonio-based Frost Investment Advisors, told Bloomberg News. “I am still an optimist that GDP growth will be higher than what downward revisions are. There are underpinnings in the economy that are churning along.”

Shares of Qualcomm advanced, last up 3.8 percent, after the company increased its dividend and its buyback plan.

Shares of JC Penney jumped, last up 6.2 percent, after Standard & Poor’s upgraded the retailer’s outlook to stable from negative, citing “modest improvements during the fourth quarter.”

Shares of RadioShack sank, down 14.7 percent, after the company reported sales that fell far short of analysts’ estimates and said it plans to close as many as 1,100 of its US stores.

The "results were much worse than we anticipated, and cast serious doubt on RadioShack's long-term viability in our opinion," BB&T Capital Markets analyst Anthony Chukumba told Reuters.

In Europe, the Stoxx 600 Index finished the day with a 2.1 percent increase from the previous close. The UK’s FTSE 100 rose 1.7 percent, while France’s CAC 40 and Germany’s DAX both gained 2.5 percent.

The rebound was paced by companies that generate a significant percentage of their sales in Russia, Reuters reported.

Shares of Finnish tyre maker Nokian Renkaat rose 3.6 per cent, while those of Austrian lender Raiffeisen Bank International gained 5.8 per cent. The two companies derive respectively 26 per cent and 22 per cent of their overall revenues from Russia, according to data from MSCI.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Court Ruling: Kiwifruit NZ Ordered To Consider Collaborative Marketing Proposals

The High Court has told kiwifruit marketer Zespri to reconsider collaborative marketing proposals from Splice Fruit and Seeka Kiwifruit to sell fruit offshore that its board had previously rejected. More>>

ALSO:

Electric Vehicles: No Road User Charges Feature In Govt Package

Drivers of electric vehicles won't have to pay road user charges and will be allowed to drive in bus lanes as part of a new government plan to double EV numbers annually to a target 64,000 by 2021. More>>

ALSO:

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news