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

 


While you were sleeping: Global outlook brightens

While you were sleeping: Global outlook brightens

May 23 (BusinessDesk) – Wall Street rose amid signs of better-than-expected manufacturing in the US and China, while there was also a sign of life in the US housing industry bolstering shares including Home Depot.

With about an hour of trading left in the day in New York, the Dow Jones Industrial Average added 0.17 percent, the Standard & Poor’s 500 Index rose 0.39 percent, while the Nasdaq Composite Index climbed 0.72 percent.

Gains in shares of Home Depot and United Health, up 1.2 percent and 1 percent respectively, led the Dow higher, outweighing declines in shares of Coca Cola and Cisco, down 0.8 percent and 0.5 percent respectively.

There was a welcome sign of improvement in the US housing industry. A report by the National Association of Realtors showed existing home sales climbed 1.3 percent in April to an annual rate of 4.65 million units. It was the first gain this year.

“Some growth was inevitable after sub-par housing activity in the first quarter, but improved inventory is expanding choices and sales should generally trend upward from this point,” Lawrence Yun, NAR chief economist, said in a statement. “Annual home sales, however, due to a sluggish first quarter, will likely be lower than last year.”

"This report provides the first crucial sign that the housing recovery may be on the verge of a rebound," Millan Mulraine, deputy chief economist at TD Securities in New York, told Reuters.

Separately, Markit’s preliminary index of US manufacturing rose to 56.2 in May, from 55.4 in April. Still, a higher than expected number of Americans filed for jobless claims in the week ended May 17.

"We have been in a 'two steps forward, one step back' progression on the domestic economy and that can be extended to the global economy as well," Jim Russell, senior investment strategist at US Bank Wealth Management in Cincinnati, told Reuters.

Shares of Best Buy advanced, last up 1.6 percent to US$25.75 after earlier rising as high as US$27.50, after the consumer-electronics retailer reporter a better-than-expected first-quarter profit.

In Europe, the Stoxx 600 Index ended the session 0.2 percent higher than the previous close, as did Germany’s DAX and France’s CAC 40. The UK’s FTSE 100 inched nearly 0.1 percent higher.

Markit’s eurozone PMI Composite Output Index fell to 53.9 in May, down from 54.0 in April and the lowest level in two months.

“A slight easing in the euro area’s rate of growth was seen in May but doesn’t change the picture of a region that’s enjoying its best spell of growth for three years, especially when an acceleration in growth of new orders suggests that the pace of expansion could pick up again in June,” Chris Williamson, chief economist at Markit, said in a statement

In China, a preliminary purchasing managers’ index from HSBC and Markit climbed to 49.7 in May, the highest level in five months, offering reason for optimism about the world’s second-largest economy.

“The improvement was broad-based with both new orders and new export orders back in expansionary territory,” Hongbin Qu, chief economist, China & co-head of Asian economic research at HSBC, said in a statement. “Disinflationary pressures also eased over the month and output prices increased for the first time since November 2013.”

“Downside risks to growth remain, particularly as the property market continues to cool,” he added. “We think more policy easing is needed to put a floor under growth in the coming months.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news