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

 


World Week Ahead: Eyes on US jobs, Yellen

World Week Ahead: Eyes on US jobs, Yellen

March 31 (BusinessDesk) – A slew of US economic reports due in the coming days might help bolster sentiment especially if March’s jobs data show the country has weathered a frigid winter better than anticipated.

Investors will closely watch the ADP employment report on Wednesday, followed by weekly jobless claims on Thursday, and the government's monthly employment report on Friday.

US employers probably added more workers to payrolls in March than the 175,000 a month earlier, while the unemployment rate may have declined to 6.6 percent, matching the lowest level since October 2008, according to a Bloomberg survey.

Other reports will also be eyed for signs that the recovery in the world’s largest economy is on track. Those include Chicago PMI and Dallas Fed manufacturing survey, due today; PMI and ISM manufacturing indices, and construction spending, due Tuesday; factory orders, due Wednesday; international trade, PMI services index, and ISM non-manufacturing index, due Thursday.

Yields on US Treasuries have climbed in the wake of comments by Federal Reserve Chairman Janet Yellen that US rates might rise as early as in the first half of 2015, earlier than investors had anticipated. Yellen will speak at a conference in Chicago today, while on Wednesday Atlanta Fed President Dennis Lockhart will talk about the economic outlook, in Miami.

“The fear of higher rates in the near term played havoc on the front end of the curve, and the market wasn’t ready for that,” Sean Simko, a money manager who oversees US$10 billion at SEI Investments in Oaks, Pennsylvania, told Bloomberg News.

Last week, the Standard & Poor’s 500 index fell 0.5 percent and the Nasdaq Composite index dropped 2.8 percent as investors sold shares of internet and biotech companies to lock in profits. The Nasdaq Biotechnology Index sank 7 percent last week. The Dow Jones Industrial Average rose 0.1 percent.

So far in 2014, the Dow is down 1 percent, while the Nasdaq has slid 0.2 percent. The S&P has gained 1 percent.

Europe’s Stoxx 600 added 1.8 percent last week, as did France’s CAC 40. The UK’s FTSE 100 gained 0.9 percent, while Germany’s DAX climbed 2.6 percent.

Policy makers of the European Central Bank meet this week and are expected to keep the benchmark interest rate at a record low on Thursday.

On Friday, a report showed that economic confidence in the euro zone rose more than expected in March, helping to bolster optimism about the outlook and the sentiment for equities.

Data to watch here in the coming days include the euro-zone consumer price index, due today; euro-zone unemployment and manufacturing, due Tuesday; euro-zone retail sales, due Thursday; and German factory orders, due Friday.

Among the latest clues for China’s economy is the official March manufacturing purchasing managers’ index, which will be released on Tuesday. There’s also rising expectation that the Chinese government will detail measures to further contain the slowdown in the world’s second-biggest economy, perhaps cutting interest rates.

On Wednesday, International Monetary Fund Managing Director Christine Lagarde will discuss the state of the global economy at Johns Hopkins University in Washington ahead of the 2014 IMF/World Bank spring meetings.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news