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

 

While you were sleeping: Yellen shows support

While you were sleeping: Yellen shows support

April 17 (BusinessDesk) – Wall Street rose after US Federal Reserve Chairman Janet Yellen reassured investors that the central bank will continue with its easy money policy to bolster the US economic recovery.

“The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained,” Yellen told the Economic Club of New York. “This approach underscores the continuing commitment of the FOMC [Federal Open Market Committee] to maintain the appropriate degree of accommodation to support the recovery.”

Meanwhile the latest economic reports provided further confirmation that the US weathered the colder-than-usual winter better than expected, as Yellen mentioned in today’s speech as well.

“In recent months, some indicators have been notably weak, requiring us to judge whether the data are signalling a material change in the outlook,” Yellen said. “The unusually harsh winter weather in much of the nation has complicated this judgment, but my FOMC colleagues and I generally believe that a significant part of the recent softness was weather related.”

In its latest Beige Book survey, the central bank said that reports from the 12 Fed Districts “suggest economic activity increased in most regions of the country since the previous report.”

Separately, US industrial production rose 0.7 percent in March, following an upwardly revised increase of 1.2 percent in February. The gain was better than expected.

Even so, another report showed housing starts climbed 2.8 percent in March to a seasonally adjusted annual rate of 946,000, which fell short of expectations.

"Several parts of the economy are warming up, but housing is the exception," Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania, told Reuters. "We are still on track for very strong second-quarter growth."

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.82 percent, the Standard & Poor’s 500 Index added 0.63 percent, while the Nasdaq Composite Index gained 0.69 percent.

Advances in shares of Visa and 3M, up 2 percent and 1.8 percent respectively, led the Dow higher.

Shares of Yahoo rose, last up 5.9 percent, after the company posted better-than-expected quarterly sales while also receiving a boost from results of Alibaba, in which Yahoo owns a stake.

On the flipside, shares of Bank of America fell, last down 2.4 percent, after the bank posted another quarterly loss.

In Europe, the Stoxx 600 Index finished the session with a 1.3 percent climb from the previous close. The UK’s FTSE 100 advanced 0.7 percent, while France’s CAC 40 increased 1.4 percent, and Germany’s DAX climbed 1.6 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO:

'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>

ALSO:

Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>

ALSO: