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

 


While you were sleeping: Crimea weighs on equities

While you were sleeping: Crimea weighs on equities

March 13 (BusinessDesk) – With the Standard & Poor’s 500 Index near record highs, investors are trying to weigh the positive outlook for the US economy with concern about signs of economic trouble in China and the ongoing Ukrainian crisis.

In afternoon trading in New York, the Dow Jones Industrial Average dropped 0.21 percent, as did the Standard & Poor’s 500 Index. The Nasdaq Composite Index eked out a 0.07 percent gain.

Slides in shares of Coca-Cola and those of Boeing, down 1.3 percent and 1 percent respectively, led the Dow lower.

“Everybody’s kind of on edge when you’re at all-time highs,” Walter Todd, chief investment officer of Greenwood Capital Associates in Greenwood, South Carolina, told Bloomberg News.

The latest US data prompted some economists to boost their optimism for the world’s largest economy. JPMorgan economist Daniel Silver said fourth-quarter growth was likely to be revised higher after services industry data on Wednesday suggested a much stronger pace of consumer spending than the government had previously assumed, according to Reuters.

In Europe, the Stoxx 600 Index ended the session with a 1.1 percent drop from the previous close. The UK’s FTSE 100 and France’s CAC 40 gave up 1 percent, while Germany’s DAX retreated 1.3 percent.

As Ukraine’s Crimea region prepares for a referendum about its status on March 16, Group of 7 leaders warned they would not recognise the outcome of such a vote.

“We call on the Russian Federation to immediately halt actions supporting a referendum on the territory of Crimea regarding its status, in direct violation of the Constitution of Ukraine,” according to the G-7 statement. “Any such referendum would have no legal effect.”

The statement said it represented the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council and the President of the European Commission. The top US and Russian foreign ministers are set to meet later this week.

The uncertainty underpinned the appeal of perceived safe-haven investments including US Treasuries and gold. Ten-year Treasuries rose, pushing yields 5 basis points lower to 2.72 percent.

Ireland government bonds have also become more enticing to investors. Yields on the country’s 10-year note dropped to a record low, a day before the country will hold its first bond auction since 2010, according to Bloomberg News.

“Ireland has seen its fundamentals improve hugely but the rally has been driven by the more general market environment,” Jan Von Gerich, a fixed-income strategist at Nordea Bank in Helsinki, told Bloomberg. “The auction will go well. Ireland is going to have more frequent market access going forward and increase liquidity.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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