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

 


While you were sleeping: Stocks climb on optimism

While you were sleeping: Stocks climb on optimism

May 13 (BusinessDesk) – Equities climbed on both sides of the Atlantic, pushing the Dow Jones Industrial Average to an intraday record, amid optimism that central banks in the world’s largest economies will help accelerate the pace of growth.

With about an hour of trading left in the day in New York, the Dow added 0.62 percent, the Standard & Poor’s 500 Index climbed 0.85 percent, while the Nasdaq Composite Index rose 1.53 percent.

Gains in shares of Goldman Sachs and United Technologies, up 1.7 percent and 1.4 percent respectively, propelled the Dow higher.

Shares of Pinnacle Foods jumped, last up more than 13 percent after Hillshire Brands agreed to buy the company for about US$6.6 billion including debt.

"These brands are almost siblings to one another. Meats go with vegetables, sandwiches go with pickles," Hillshire Chief Executive Sean Connolly, who will lead the post-merger company, told Reuters in an interview.

The Dow climbed as high as 16,702.40, an intraday record. The S&P 500 is near a record with eight of its 10 industry sectors higher. Internet and biotech stocks, which have been hammered in volatile trading recently, were among the biggest gainers including Facebook, Netflix and Twitter.

Meanwhile US Treasuries fell, pushing yields on the 30-year bond four basis points higher to 3.50 percent.

“The global economy is accelerating, central banks are dovish, companies are making acquisitions and it’s hard to see what could keep the market down from here,” Allan von Mehren, chief analyst at Danske Bank in Copenhagen, told Bloomberg News.

Europe’s Stoxx 600 Index ended the day with a 0.7 percent increase from the previous close. France’s CAC 40 advanced 0.4 percent, the UK’s FTSE 100 rose 0.6 percent, while Germany’s DAX gained 1.3 percent.

Following reassuring comments by both US Federal Reserve Chairman Janet Yellen and European Central Bank President Mario Draghi last week that they are ready to help support the pace of growth, some interpreted Chinese President Xi Jinping’s latest comments that the government will underpin equities in the world’s second-largest economy.

“We must boost our confidence, adapt to the new normal condition based on the characteristics of China's economic growth in the current phase and stay cool-minded,” Jinping said on the weekend, according to Xinhua News Agency.

He said the government needed to prevent risks and take “timely counter-measures to reduce potential negative effects.”

Metals including nickel and copper rose as a result, rising more than 5 percent and 2 percent respectively.

"Investors clearly seem to be hoping that the Chinese government will be more aggressive in responding to the weakness that is now more evident in broad swaths of the economy," Ed Meir, analyst at INTL FCStone, told Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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