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

 


While you were sleeping: Fed support intact

While you were sleeping: Fed support intact

April 10 (BusinessDesk) – Wall Street rose, extending gains after the latest Federal Reserve meeting minutes eased concern that US policy makers had been planning to raise interest rates sooner than had been anticipated.

The Fed released minutes from the March 18-19 Federal Open Market Committee meeting at 2pm Washington time. Fed Chairman Janet Yellen’s comments at the end of that meeting, saying rates could rise as early as the first half of 2015, had triggered concern the central bank was becoming less accommodative.

And the FOMC minutes showed some policy makers were wary of exactly that misinterpretation by investors.

“A number of participants noted the overall upward shift since December in participants’ projections of the federal funds rate included in the March SEP [summary of economic projections], with some expressing concern that this component of the SEP could be misconstrued as indicating a move by the Committee to a less accommodative reaction function,” according to the minutes released today. “However, several participants noted that the increase in the median projection overstated the shift in the projections.”

“Most participants favoured providing an explicit indication in the statement that the new forward guidance, taken as a whole, did not imply a change in the Committee’s policy intentions, on the grounds that such an indication could help forestall misinterpretation of the new forward guidance,” the minutes showed.

In afternoon trading in New York, the Dow Jones Industrial Average added 0.97 percent, the Standard & Poor’s 500 Index rose 0.75 percent, while the Nasdaq Composite Index increased 1.36 percent. The Dow was up about 0.5 percent prior to the Fed minutes being released.

Shares of Merck and Boeing advanced, last up 2.9 percent and 2 percent respectively, propelling the Dow higher.

“People are taking solace in the idea that the Fed may be more accommodative than previously thought, for longer than previously thought," Steve Sosnick, equity-risk manager at Timber Hill/Interactive Brokers Group in Greenwich, Connecticut, told Reuters.

Two-year notes also rose as a result, pushing yields three basis points lower to 0.37 percent.

“It’s dovish for the rates market because it initially sold off because they thought participants were expecting a sooner and faster hiking cycle,” Shyam Rajan, an interest-rate strategist at Bank of America, one of 22 primary dealers that trade with the Fed, told Bloomberg News. “The fact that they are playing it down is bullish.”

There were more reasons for optimism. Shares of Alcoa rose, last up 3.4 percent, after the company reported earnings that were better than anticipated, setting a positive tone to the start of the quarterly US results season.

In Europe, the Stoxx 600 Index finished the session with a 0.4 percent increase from the previous close, as did France’s CAC 40. Germany’s DAX rose 0.2 percent, while the UK’s FTSE 100 gained 0.7 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news