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

 


World Week Ahead: Eyes on Yellen, jobs

World Week Ahead: Eyes on Yellen, jobs

By Margreet Dietz

June 30 (BusinessDesk) – A speech by US Federal Reserve Chair Janet Yellen and American jobs reports will provide key focus during a holiday-shortened week on Wall Street.

US markets are closed on Friday for the July 4th Independence Day holiday.

On Wednesday Yellen is scheduled to talk at the International Monetary Fund in Washington and investors will scrutinise her speech for clues about the timing of an interest rate increase following last week’s comments by St Louis Fed chief James Bullard.

Bullard, while not a current voting member of the Fed’s policy-making committee, rattled markets when said he expected the US central bank to lift rates by the end of the first quarter of 2015 as the economy gathers pace.

While the world’s biggest economy is in recovery mode, it continues to hit speed bumps. Separate reports last week showed that American GDP contracted at a 2.9 percent annualised rate in the first quarter, while consumer spending increased less than expected in May.

Citigroup last week downgraded its year-end forecast for the yield on the US 10-year note by 40 basis points, to 2.95 percent, from 3.35 percent, because of the slow growth.

“The data have been very disappointing -- 2014 should have been a breakout year for growth with consensus estimates close to 3 percent for the year,” strategists Amitabh Arora and Kevin Shapiro wrote in a report, Bloomberg News reported.

Last week, the Dow Jones Industrial Average fell 0.6 percent, while the Standard & Poor’s 500 Index gave up 0.1 percent. The Nasdaq Composite index rose 0.7 percent.

Importantly, investors will eye the government’s monthly jobs data, due Thursday, which is expected to show the American economy added 215,000 jobs in June, while the jobless rate held at a six-year low of 6.3 percent. Bullard pointed to the labour market as a sign of the economy’s strength.

In other jobs news, the ADP employment report is due Wednesday, while weekly jobless claims are also due Thursday.

"Prices have finally achieved a certain valuation level that has become increasingly uncomfortable for market participants in the absence of further decisive evidence that the economy is on the right track," Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, told Reuters.

So far this year, the S&P 500 has added 7.2 percent, closing on Friday at 1,960.96. A recent Reuters poll showed market participants expect the index to hit 2,000 for the first time before the year ends.

Other data due in the coming days include the Chicago PMI, pending home sales index, and Dallas Fed manufacturing survey, due today; PMI and ISM manufacturing indices, and construction spending, due Tuesday; factory orders, due Wednesday; and international trade, PMI services index, and ISM non-manufacturing index, due Thursday.

Today, San Francisco Fed President John Williams is scheduled to speak at a banking conference in Sun Valley, Idaho.

On Tuesday, a report is expected to show that China’s official manufacturing PMI gained in June, adding to recent signs that the government efforts to help accelerate the pace of growth in the world’s second-largest economy are beginning to pay off.

In Europe, the Stoxx 600 shed 1.8 percent last week, while the FTSE 100 Index dropped 1 percent.

The latest data in the coming days include euro-zone CPI, due today; euro-zone unemployment as well as the region’s manufacturing, due Tuesday; euro-zone producer prices, due Wednesday; euro-zone retail sales, due Thursday; and Germany factory orders, due Friday.

The European Central Bank’s policy members will meet on Thursday, although the bank is not expected to announce any new measures to bolster the region’s growth.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news