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

 


While you were sleeping: Strong US private jobs data

While you were sleeping: Strong US private jobs data

July 3 (BusinessDesk) – Wall Street lingered near record highs as investors awaited the government’s jobs report, due on Thursday, after stronger-than-expected private jobs data underpinned the view that the world’s largest economy is in better shape than thought.

In the final hour of trading in New York, the Dow Jones Industrial Average crept 0.07 percent higher, while the Standard & Poor’s 500 Index eked out a 0.03 percent gain. The Nasdaq Composite Index slipped 0.05 percent lower. Both the Dow and the S&P 500 finished the previous day at record closing highs.

The Dow was mixed as gains in shares of shares of IBM and Pfizer, up 1.1 percent and 1 percent respectively, offset declines in shares of JPMorgan Chase and United Technologies, down 1 percent and 0.9 percent respectively. JPMorgan slid a day after its CEO Jamie Dimon said he was diagnosed with curable throat cancer.

US companies added 281,000 workers to their payrolls in June, the most since November 2012, according to a report by the ADP Research Institute.

"This is further proof that recent weaker growth numbers are not a true reflection of the U.S. economy," Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh, told Reuters.

Still investors were reluctant to place fresh bets before the government jobs report due on Thursday. Payrolls probably increased by 212,000 in June after rising by 217,000 the prior month, according to a Reuters poll of economists.

The solid ADP report lowered the appeal of US Treasuries, pushing the yield on the benchmark 10-year bond six basis points higher to 2.63 percent.

“The bond market is telling you the economy is improving, but low levels of rates mean growth is still slow and inflation will not be a threat,” Adrian Miller, director of fixed-income strategies at GMP Securities in New York, told Bloomberg News. “All eyes will be on the jobs report.”

Another report showed US factory orders declined 0.5 percent in May, following a revised 0.8 percent increase in April.

Meanwhile, US Federal Reserve Chair Janet Yellen said in a speech at a meeting hosted by the International Monetary Fund that she did not see the need for monetary policy to deviate from a primary focus on attaining price stability and maximum employment, in order to address financial stability concerns.

“That said, I do see pockets of increased risk-taking across the financial system, and an acceleration or broadening of these concerns could necessitate a more robust macroprudential approach,” Yellen said.

"Monetary policy faces significant limitations as a tool to promote financial stability: Its effects on financial vulnerabilities, such as excessive leverage and maturity transformation, are not well understood and are less direct than a regulatory or supervisory approach; in addition, efforts to promote financial stability through adjustments in interest rates would increase the volatility of inflation and employment,” according to Yellen.

In Europe, the Stoxx 600 Index finished the day with a 0.2 percent gain from the previous close, as did the UK’s FTSE 100. Germany’s DAX rose 0.1 percent. France’s CAC 40 fell 0.4 percent.

The European Central Bank is widely expected to keep its benchmark interest rate steady at a meeting on Thursday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news