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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news