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

 


World Week Ahead: Fed policymakers meet

World Week Ahead: Fed policymakers meet

By Margreet Dietz

April 28 (BusinessDesk) – A US Federal Reserve meeting, a slew of economic data including the US government’s monthly jobs figures, and plenty of quarterly earnings this week should help investors decide whether equities near record highs have room to move higher.

The Federal Open Market Committee is scheduled to start its two-day meeting on Tuesday and is expected to announce another US$10 billion reduction to its monthly bond-buying programme, reducing it to US$45 billion. More importantly, investors are hoping for even more assurances that the central bank will keep interest rates near record lows for longer.

While Fed Chair Janet Yellen is not scheduled to give a press conference on Wednesday after the FOMC releases its decision, the next day she is to speak to the Independent Community Bankers of America, in Washington.

Investors will also closely watch the latest corporate earnings. Tech companies including Twitter, eBay, and LinkedIn; oil companies including ExxonMobil, Chevron, and ConocoPhillips; and drug companies including Merck, GlaxoSmithKline and Bristol-Myers Squibb are among those scheduled to release results in the coming days.

The earnings season is off to an OK start but has failed to help drive Wall Street to fresh records. Of the 239 companies that have released results this season, 75 percent have beaten analysts’ profit estimates, while 53 percent have surpassed sales forecasts, data compiled by Bloomberg show. It’s important to note that expectations had been pared back in advance.

Last week, the Dow Jones Industrial Average fell 0.29 percent, the Standard & Poor’s 500 index slipped 0.08 percent, while the Nasdaq Composite index shed 0.49 percent.

And some companies, particularly in the tech sector, have downright disappointed. Shares of Amazon tanked on Friday, shedding 9.9 percent, amid concerns that the company’s expenses continue to surge.

“You’ve seen a prick in the bubble of some of these tech stocks,” Pat Becker, a fund manager at Becker Capital Management in Portland, Oregon, told Bloomberg News. “It’s been a momentum driven market in some names and that momentum has ceased.”

Oil companies, on the other hand, might have increased in appeal.

"These big energy companies that pay dividends and have solid buyback programs are more defensive in nature as long as the price of the underlying commodity holds up," Mike O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut, told Reuters.

The coming days will also offer many clues on the state of the world’s largest economy.

On Friday, a Labor Department report will show American employers added 215,000 workers in April, the most since November, while the unemployment rate fell to 6.6 percent, from 6.7 percent in March, according to a Bloomberg News survey.

Other reports scheduled for release include the pending home sales index, and the Dallas Fed manufacturing survey, due today; the S&P Case-Shiller home price index, and consumer confidence, due Tuesday; the ADP employment report, GDP, and the employment cost index, due Wednesday; weekly jobless claims, motor vehicle sales, the PMI and ISM manufacturing indices, due Thursday; and factory orders on Friday.

In Europe, the Stoxx 600 added 0.3 percent last week. Meanwhile, Germany’s DAX advanced 0.7 percent, while the UK’s FTSE 100 rose 0.9 percent.

Here, most markets will be closed for the May 1 holiday.

The Bank of Japan is scheduled to gather on Wednesday and will provide its twice-yearly report on the country’s economic outlook.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news