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

 


While you were sleeping: Wall Street pauses

While you were sleeping: Wall Street pauses

April 4 (BusinessDesk) – US equities slipped from record highs as investors awaited the government’s monthly employment data before making further bets on the American economy.

A Labor Department report today showed initial claims for state unemployment benefits climbed by 16,000 to a seasonally adjusted 326,000 last week. The previous day ADP Research Institute data had showed US companies added 191,000 payrolls in March.

Separately, the US trade deficit unexpectedly grew in February, rising 7.7 percent to US$42.3 billion, while the Institute for Supply Management’s US non-manufacturing index increased to 53.1 in March, up from 51.6 a month earlier.

“The information we've gotten so far today is a little bit on the light side with respect to leading us towards bullishness, but not enough to make us run screaming 'sell' down the halls," Kim Forrest, senior equity research analyst, Fort Pitt Capital Group in Pittsburgh, told Reuters.

The government’s payrolls report is expected to show that 200,000 jobs were added last month with the jobless rate slipping to 6.6 per cent.

In afternoon trading in New York, the Dow Jones Industrial Average edged 0.04 percent lower, the Standard & Poor’s 500 Index fell 0.20 percent, while the Nasdaq Composite Index dropped 0.87 percent.

Earlier in the session both the Dow and the S&P 500 set intraday record highs.

Gains in shares of Intel and American Express, up 1.8 percent and 0.6 percent respectively, offset declines in shares of Microsoft and Merck, down 0.9 percent and 0.7 percent respectively.

In Europe, the Stoxx 600 Index ended the day 0.1 percent higher than the previous close, as did Germany’s DAX. France’s CAC 40 rose 0.4 percent. The UK’s FTSE 100 fell 0.2 percent.

The European Central Bank kept its benchmark interest rate unchanged at a record low 0.25 percent, as had been widely expected.

“We are resolute in our determination to maintain a high degree of monetary accommodation and to act swiftly if required,” ECB President Mario Draghi said after the meeting in a statement. “Hence, we do not exclude further monetary policy easing and we firmly reiterate that we continue to expect the key ECB interest rates to remain at present or lower levels for an extended period of time.”

“The Governing Council is unanimous in its commitment to using also unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation,” Draghi said. “The risks surrounding the economic outlook for the euro area continue to be on the downside.”

Some analysts said Draghi’s comment reflected a new urgency with regards to bolstering inflation to a higher level.

“Draghi tends to speak vaguely and just reiterate earlier speeches but he was more specific and aggressive this time round,” Steven Santos, a broker at X-Trade Brokers, told Bloomberg News. “It looks like the ECB is increasingly pondering cutting the main interest rate and that the central bank might even come up with new measures soon. Markets clearly want more intervention from Draghi.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news