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

 

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news