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

 


While you were sleeping: US equities slip from records

While you were sleeping: US equities slip from records

June 10 (BusinessDesk) – Wall Street eased from record highs, even as more indicators point to a broadening of the economic recovery, as investors assessed whether equity valuations were rising at a reasonable rate.

In the final hour of trading in New York, the Dow Jones Industrial Average slipped 0.07 percent, as did the Nasdaq Composite Index, while the Standard & Poor’s 500 Index fell 0.12 percent.

In the Dow, declines in shares of IBM, down 1.1 percent, and those of United Technologies, down 0.8 percent, outweighed gains in shares of Intel, up 1.3 percent, and those of Cisco, up 0.8 percent.

“People are looking for reasons to really buy, but we're optimistic that equities can continue to push higher," David Carter, chief investment officer of Lenox Wealth Advisors in New York, told Reuters.

The latest reports on the American economy underpinned recent signs that the recovery is gathering speed. Wholesale inventories rose a larger-than-expected 1.1 percent in April, while separate reports showed that job openings climbed by 289,000 to a seasonally adjusted 4.46 million in April, the highest level since August 2007, and the NFIB’s small business optimism index in May posted its highest reading since September 2007.

"The list of indicators showing the economy is back continues to get longer every day," Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York, told Reuters. "It's getting harder and harder to point to slack in economic conditions."

US Federal Reserve policy makers are set to begin a two-day meeting next week on June 17. The Federal Open Market Committee has so far downgraded its bond-buying to US$45 billion a month and is expected to announce another US$10 billion reduction next week.

Treasuries certainly took note of the accelerating economic momentum. The US sold US$28 billion of three-year securities at the highest yield in three years.

“Between the upcoming Fed meeting and supply considerations later this week, not to mention a generally bearish trend for the Treasury market overall, ambition to add exposure to front-end Treasuries has been muted,” Ian Lyngen, a government-bond strategist at CRT Capital Group in Stamford, Connecticut, told Bloomberg News.

In Europe, the Stoxx 600 Index ended the day with a 0.3 percent advance from the previous close. France’s CAC 40 added 0.1 percent, while Germany’s DAX rose 0.2 percent. The UK’s FTSE 100 slipped 0.02 percent.

Shares in Italy’s Monte Paschi surged near 20 percent on the second day of a 5-billion-euro share sale. The shares had failed to trade throughout the session until the close, Reuters reported, but they had been indicated higher.

Palladium and platinum prices rose after talks to stop a five-month strike at mines in South Africa, the world’s top producer of platinum and the second-largest of palladium, ended without an agreement.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news