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

 


While you were sleeping: US jobs, factory orders

While you were sleeping: US jobs, factory orders

April 3 (BusinessDesk) – The Standard & Poor’s 500 Index rose to a fresh record after solid data on US jobs and factory orders underpinned optimism about the outlook for the world’s largest economy.

US companies added 191,000 payrolls in March, according to ADP Research Institute data, while a separate Commerce Department report showed factory orders rose 1.6 percent in February, up from a revised 0.5 percent increase in January.

The company-hiring data “showed a respectable and near-expected gain, but that probably won’t boost expectations for Friday’s full nonfarm payrolls number,” Robert Lynch, a currency strategist at HSBC Holdings in New York, told Bloomberg News.

Friday’s report is expected to show nonfarm payrolls rose by 200,000 in March, the largest gain in four months, according to a Reuters poll of economists.

In afternoon trading in New York, the S&P 500 was last up 0.11 percent. Earlier it rose to a record 1,890.80. The US dollar also gained, up 0.2 percent against the yen as well as the euro.

"Whatever impact the weather was having is starting to dissipate and we are starting to see the economy gain traction," Sam Bullard, a senior economist at Wells Fargo Securities in Charlotte, North Carolina, told Reuters.

Still, the Dow Jones Industrial Average slipped 0.03 percent, while the Nasdaq Composite Index inched 0.07 percent lower.

Gains in shares of Caterpillar and United Technologies, up 1.7 percent and 1.3 percent respectively, offset declines in shares of Cisco and Intel, both down 1.1 percent.

In Europe, the Stoxx 600 Index finished the session with a 0.2 percent increase from the previous close, as did Germany’s DAX. The UK’s FTSE 100 and France’s CAC 40 rose 0.1 percent.

A report today showed the euro zone’s gross domestic product grew 0.2 percent in the last three months of 2013, below the preliminary estimate of 0.3 percent.

Meanwhile, IMF Managing Director Christine Lagarde warned that the pace of the global economic recovery remained a concern.

“Certainly the global economy has stabilised since the onset of the financial crisis, but the recovery is too weak for comfort,” Lagarde said in Washington. “Moreover, unless countries come together to take the right kind of policy measures, we could be facing years of slow and sub-par growth—well below the solid, sustainable growth that is needed to create enough jobs and improve living standards into the future.”

“Recovery is taking hold but is too slow and it faces several obstacles along the road,” Lagarde said. “Bold policy steps can overcome these obstacles and take the global economy to the next level of more rapid and sustainable growth.”

Among key obstacles are geopolitical tensions, notably the Ukraine crisis, she said.

“The situation in Ukraine is one which, if not well managed, could have broader spillover implications,” according to Lagarde.

(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