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

 

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:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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