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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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