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

 


While you were sleeping: Alcoa lifts mood

While you were sleeping: Alcoa lifts mood

July 10 (BusinessDesk) - Wall Street gained, rising for the first day in three, after Alcoa’s better-than-expected quarterly profit bolstered optimism about the US second-quarter earnings season.

Shares of Alcoa soared, last up 6.1 percent, after the company posted a quarterly profit that surpassed expectations.

In late afternoon trading in New York, the Dow Jones Industrial Average gained 0.48 percent, the Standard & Poor’s 500 index rose 0.62 percent, while the Nasdaq Composite Index added 0.32 percent.

Gains in shares of Cisco and Walt Disney, last up 1.5 percent and 1.3 percent respectively, led the Dow higher.

The Chicago Board Options Exchange Volatility Index, also referred to as the investors’ fear gauge, dropped 1.8 percent to 11.76.

Meanwhile the Federal Reserve flagged the timing for completing its monthly bond purchases, as highlighted in the minutes from the latest meeting released on Wednesday, also underpinning the view that the US economy is gathering momentum.

"The market, after digesting the Fed minutes, came to the conclusion that the bond buying program ending in October is a sign of economic strength," Peter Cardillo, chief market economist at Rockwell Global Capital in New York, told Reuters. "So while it was a bit more hawkish, the conclusion is the economy doesn’t need any more crutches."

Policy makers have reduced the central bank’s monthly bond-buying programme in US$10 billion increments for the past five meetings, downgrading it to US$35 billion in June, from its peak of US$85 billion.

The Federal Open Market Committee agreed that they will continue to cut the programme in US$10 billion increments, with a final US$15 billion reduction after its October meeting, according to the minutes.

The greenback slid to US$1.3643 against the euro, from US$1.3624 before the minutes were released. The US dollar also fell against the Japanese currency.

US Treasuries recovered from an earlier decline. The benchmark US 10-year yield fell one basis point to 2.55 percent after climbing as much as four basis points earlier.

“They have a dovish tone, even though we’re seeing a resumption of growth in the second quarter,” Michael Materasso, senior portfolio manager and co-chairman of the fixed-income policy committee at Franklin Templeton Investments in New York, told Bloomberg News.

Fed officials expressed concern about trends suggesting investors failed to take risks into account in their investment decisions.

“Signs of increased risk-taking were viewed by some participants as an indication that market participants were not factoring in sufficient uncertainty about the path of the economy and monetary policy,” according to the minutes.

In Europe, the Stoxx 600 Index inched lower to close at 339.96. cent. The UK’s FTSE 100 fell 0.3 percent. Germany’s DAX and France’s CAC 40 both gained 0.4 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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