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

 


While you were sleeping: US manufacturing lifts stocks

While you were sleeping: US manufacturing lifts stocks

March 18 (BusinessDesk) – Equities on both sides of the Atlantic advanced amid better-than-expected gains in US manufacturing as Federal Reserve policy makers gear up to start their next two-day meeting on Tuesday.

A Fed report showed that US factory production climbed 0.8 percent in February, after a 0.9 percent slide in January. The increase beat economists’ estimates.

The data underpinned expectations that the US economy is coming out of a harsher-than-usual winter in strong enough shape for FOMC policy makers to continue tapering their monthly bond purchase programme, with the next cut expected to be announced at the end of their meeting on Wednesday.

In the most recent two meetings in December 2013 and January 2014, the Fed cut the programme by US$10 billion. It’s now at a US$65 billion monthly pace.

“The gains should be enough to reassure policymakers at the Fed that the economy continues to make forward progress," John Ryding, chief economist at RDQ Economics in New York, told Reuters.

Other data showed that the New York Fed’s Empire State business conditions index rose to 5.61 in March, up from 4.48 in February. To be sure, the gain fell short of expectations.

In afternoon trading in New York, the Dow Jones Industrial Average rose 1.02 percent, the Standard & Poor’s 500 Index added 0.88 percent, while the Nasdaq Composite Index advanced 0.96 percent.

Gains in shares of Boeing and those of IBM, up 2 percent and 1.9 percent respectively, led the Dow higher.

In Europe, the Stoxx 600 Index ended the session with a 1.1 percent gain from the previous close. The UK’s FTSE 100 rose 0.6 percent, France’s CAC 40 rose 1.3 percent, while Germany’s DAX climbed 1.4 percent.

Investors seemed to shrug off the result of Sunday’s referendum in Crimea, which showed most voters want the region to secede from the Ukraine and join Russia. The US and the European Union announced they imposed sanctions on Russia as a result.

“The referendum is illegal and illegitimate and its outcome will not be recognised,” presidents of the European Council and the European Commission said in a joint statement.

The latest euro-zone data showed inflation remains very benign. Consumer prices rose an annual 0.7 percent last month, down from 0.8 percent in January.

It’s “a clear reminder that low inflation may have become the new normal for the euro zone,” Martin van Vliet, an economist at ING Bank in Amsterdam, told Bloomberg News.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news