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

 


While you were sleeping: Wall Street rallies to record

While you were sleeping: Wall Street rallies to record

July 2 (BusinessDesk) – Wall Street climbed, pushing the Dow and the S&P 500 to record highs, as solid manufacturing data from the US and China bolstered optimism about the outlook for the world’s two largest economies.

The Institute for Supply Management’s index of national factory activity was at 55.3 in June, barely budging from the five-month high of 55.4 in May. Separately, Markit’s final US manufacturing purchasing managers index rose to 57.3 in June, the highest level since May 2010.

"It's all very constructive," Jacob Oubina, senior US economist at RBC Capital Markets in New York, told Reuters. “The second half of the year should look much, much better for capex (capital expenditure) investment.”

In the final hour of trading in New York, the Dow Jones Industrial Average climbed 0.87 percent, the Standard & Poor’s 500 Index added 0.86 percent, while the Nasdaq Composite Index rallied 1.34 percent. The Dow is nearing the 17,000-point mark.

Gains in shares of IBM and Pfizer, last up 3 percent and 2.1 percent respectively, led the advance in the Dow. The Dow climbed as high as a record 16,998.70 earlier in the session, as did the S&P 500 which touched 1,978.58.

Another report showed US construction spending rose 0.1 percent in May, following a 0.8 percent gain in April.

In Europe, the Stoxx 600 Index ended the day with a 0.9 percent increase from the previous close, as did the UK’s FTSE 100 and France’s CAC 40. Germany’s DAX gained 0.7 percent. Shares in Rio Tinto helped lift the FTSE 100, while BNP Paribas rallied in relief to bolster the CAC 40. The French bank has reached a settlement with US authorities over past moves to dodge US financial sanctions against several countries including Sudan.

While manufacturing in the euro zone edged lower to 51.8 in June, down from 52.2 in May, it did at least expand for the 12th straight month, according to Markit Economics.

“Economic indicators still suggest everything is in place for a recovery,” Dirk Thiels, head of investment management at KBC Asset Management, told Bloomberg News. “The data in Europe, although not spectacular, is holding steady above the expansion level, and the US looks like it’s going in the right direction.”

Still, Germany, the euro-zone’s engine economy, is showing signs of weakness. Production growth was the lowest in nine months, while the country’s unemployment unexpectedly rose for a second month.

“With manufacturing growing at the slowest rate for seven months in June, the PMI survey will raise concerns that the euro-zone recovery is losing momentum,” said Chris Williamson, Markit’s chief economist, in a statement. “There are encouraging signs of growth gathering
momentum in the region’s periphery, especially in Spain and Ireland, and some of the slowdown in Germany may have been due to a high number of public holidays. But the overall picture is a reminder of just how fragile the region’s recovery is looking.”

Meanwhile, China showed the fastest pace of growth in manufacturing so far this year as its purchasing managers’ index, as measured by National Bureau of Statistics and China Federation of Logistics and Purchasing, came in at 51.0 for June. HSBC’s China manufacturing PMI rose to 50.7 in June, up from 49.4 in May.

“This confirms the trend of stronger demand and faster de-stocking,” Hongbin Qu, chief economist, China & co-head of Asian economic research at HSBC, said in a statement. “The economy continues to show more signs of recovery, and this momentum will likely continue over the next few months, supported by stronger infrastructure investments.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news