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

 


While you were sleeping: Wall Street mixed

While you were sleeping: Wall Street mixed

June 24 (BusinessDesk) – Wall Street hovered near record highs as this week’s flurry of economic data kicked off with solid manufacturing statistics in the US and China, as well as American existing home sales.

In the US, Markit’s preliminary manufacturing purchasing managers’ index climbed to 57.5 in June, up from 56.4 in the previous month and the strongest upturn in overall business conditions since May 2010.

“US industry is booming again, with the flash manufacturing PMI hitting its highest for just over four years in June,” Chris Williamson, chief economist at Markit, said in a statement. “The strong reading also rounds off the best quarter for factories for four years, adding to indications that the US economy rebounded strongly in the second quarter from the weather-related weakness seen at the start of the year.”

In China, the HSBC/Markit manufacturing PMI increased to 50.8 in June, up from 49.4 a month earlier, a better-than-expected reading for the world’s second-largest economy.

“The improvement was broad-based with both domestic orders and external demand sub-indices in expansionary territory. Inventory reduction quickened, and the employment sub-index also showed signs of stabilisation,” Hongbin Qu, chief economist, China & co-head of Asian economic research at HSBC, said in a statement. “This month's improvement is consistent with data suggesting that the authorities' mini-stimulus are filtering through to the real economy.”

In the final hour of trading in New York, the Dow Jones Industrial Average fell 0.16 percent, while the Standard & Poor’s 500 Index slipped 0.10 percent. The Nasdaq Composite Index eked out a 0.03 percent gain.

“Right now we're digesting last week's gains and keeping an eye on all the economic data that's coming out this week," Leo Grohowski, chief investment officer at BNY Mellon Wealth Management in New York, told Reuters. "We're not likely to see a major pullback given healthy activity like buybacks and mergers, but today is a day of quiet consolidation."

American real estate offered reasons for optimism. Total existing-home sales rose 4.9 percent, to a seasonally adjusted annual rate of 4.89 million in May, from an upwardly-revised 4.66 million in April. It was the highest monthly rise since August 2011.

“Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year,” Lawrence Yun, NAR chief economist, said in a statement. “Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates.”

Shares of General Electric fell, last down 1.2 percent and leading the decline in the Dow, after the company secured support from the French government for its US$17 billion purchase of Alstom’s energy assets.

In Europe, the Stoxx 600 Index ended the session with a 0.5 percent drop from the previous close. The UK’s FTSE 100 fell 0.4 percent, while France’s CAC 40 declined 0.6 percent and Germany’s DAX shed 0.7 percent.

Here, euro-zone manufacturing and services activity fell in June, with Markit’s PMI composite output index declining to 52.8, down from 53.5 in May and the lowest in six months.

“The June PMI rounded off the strongest quarter for three years, but a concern is that a second consecutive monthly fall in the index signals that the eurozone recovery is losing momentum,” Markit’s Williamson said.

“Hopefully the recent stimulus measures from the [European Central Bank] will help revive growth again, something which may already be evident as the survey saw the largest increase in inflows of new business for three years in June,” Williamson said.

(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