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

 


While you were sleeping: Consumer gains confidence

While you were sleeping: Consumer gains confidence

March 26 (BusinessDesk) – Wall Street gained after data showing US consumer confidence has improved to a six-year high bolstered expectations that the recovery of the world’s biggest economy is intact.

The Conference Board’s index of US consumer confidence rose to 82.3 in March, up from 78.3 in February, a report showed today. The gain was larger than expected.

“While consumers were moderately more upbeat about future job prospects and the overall economy, they were less optimistic about income growth,” Lynn Franco, director of economic indicators at The Conference Board, said in a statement. “Overall, consumers expect the economy to continue improving and believe it may even pick up a little steam in the months ahead.”

Separately, purchases of new homes declined in February, falling 3.3 percent to a seasonally adjusted annual rate of 440,000 units, the lowest level since September 2013.

Investors opted to focus on the bright side. In afternoon trading in New York, the Dow Jones Industrial Average rose 0.76 percent, the Standard & Poor’s 500 Index added 0.45 percent, while the Nasdaq Composite Index advanced 0.17 percent.

“The world is nowhere near fully invested. Global growth will kick in once the US frees itself from a freezing cold winter and you want to own a slice of that,” William Hobbs, the London-based head of equity strategy at Barclays’ wealth-management unit, told Bloomberg News. “We expect synchronised and accelerating growth from most of the developed economies.”

Gains in shares of IBM and Cisco, up 3.3 percent and 2.6 percent respectively, led the advance in the Dow.

Meanwhile, Philadelphia Fed President Charles Plosser told CNBC he was surprised by the market's reaction following Fed Chairman Janet Yellen’s comments at the conclusion of the FOMC meeting last week.

Last Wednesday Yellen said interest rates might rise as early as the first half of 2015.

“It's a little bit puzzling that the market would react the way it did," Plosser said on CNBC's "Squawk Box." "I don't think the Fed changed its position. In fact, it tried to say very explicitly in its statement that we believe forward guidance or the expectations have not changed as far as we're concerned."

In Europe, the Stoxx 600 Index finished the day with an advance of 1.3 percent from the previous close, as did the UK’s FTSE 100. France’s CAC 40 and Germany’s DAX both climbed 1.6 percent.

In Germany, business confidence weakened. The Ifo institute’s business-climate index slid to 110.7 in March, down from 111.3 in February.

Some investors found value in gold prices that touched the lowest level since February 14. Gold futures for June delivery were up 0.1 percent to US$1,312.80 an ounce on the Comex in New York, after earlier in the day sliding as low as US$1,305.90, according to Bloomberg News.

Commodities in general were lifted in part by hopes that the Chinese government may seek to prop up its weakening economy.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news