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

 


While you were sleeping: US data show shine

While you were sleeping: US data show shine

March 21 (BusinessDesk) – Wall Street moved higher as the latest reports underpinned the view that the pace of recovery in the world’s largest economy is gathering momentum.

Yesterday Federal Reserve Chairman Janet Yellen suggested US borrowing costs might begin rising faster than economists and investors had anticipated because of the US economy’s strength.

Jobless claims rose by 5,000 to 320,000 in the week ended March 15, according to Labor Department data. The four-week average, a less volatile measure, declined to 327,000.

Separately, the Conference Board’s index leading indicators advanced more than forecast in February, climbing 0.5 percent, following a revised 0.1 percent gain in January. The Philadelphia Federal Reserve Bank’s business activity index was at 9.0 in March, from -6.3 in February.

Even so, existing home sales fell 0.4 percent to an annual rate of 4.60 million units, according to the National Association of Realtors.

US policy makers yesterday also announced another US$10 billion downgrade to their monthly bond purchases, now reduced to a pace of US$55 billion a month.

"We're trying to decipher her timeframe and get ahead of it," Frank Davis, director of sales and trading at LEK Securities in New York, told Reuters. "While we didn't make any drastic changes to our positions as a result of what she said, we have a tight watch on her to figure out how she'll play her hand."

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.70 percent, the Standard & Poor’s 500 Index added 0.58 percent, while the Nasdaq Composite Index gained 0.36 percent.

Gains in shares of JPMorgan and those of Microsoft, up 3.5 percent and 3.1 percent respectively, helped propel the Dow higher.

“People are back focusing on signs of economic growth,” Stephen Carl, principal and head equity trader at New York-based Williams Capital Group, told Bloomberg News.

In Europe, the Stoxx 600 Index edged higher to finish today’s session at 327.67. Germany’s DAX rose 0.2 percent, while France’s CAC 40 advanced 0.5 percent. The UK’s FTSE 100 shed 0.5 percent.

Gold suffered a drop as the Fed’s confidence in the improving US economy decreased the appeal of the safe-having investment. Gold futures for April delivery 0.8 percent lower to close at US$1,330.50 on the Comex in New York.

“People are reassessing their reasons to hold gold,” Adam Klopfenstein, a senior market strategist at Archer Financial Services in Chicago, told Bloomberg News. “Gold has removed its safe-haven hat.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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