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

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news