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

 

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>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news