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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news