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


While you were sleeping: Eyes on Ukraine, Gaza conflicts

While you were sleeping: Eyes on Ukraine, Gaza conflicts

July 22 (BusinessDesk) - Equities fell on both sides of the Atlantic as concern about the potential impact of intensifying tensions in Ukraine and Gaza overshadowed US second-quarter earnings.

In late afternoon trading in New York, the Dow Jones Industrial Average fell 0.23 percent, the Standard & Poor’s 500 index retreated 0.22 percent, while the Nasdaq Composite Index slipped 0.12 percent. 

Declines in shares of General Electric and McDonald’s, down 1.9 percent and 1.3 percent respectively, outweighed gains in shares of Intel and Microsoft, up 1 percent and 0.9 percent respectively.

Shares of McDonald’s as well as those of Yum! Brands dropped amid another health food scare at one their suppliers in China. Shares of Yum! Brands were last down 3.8 percent.

"I think this is going to be really challenging for both these firms," Benjamin Cavender, Shanghai-based principal at China Market Research Group, told Reuters. "I don't know that this is something an apology can fix so easily, because at this point people don't have a whole lot of trust that they have good systems in place."

In Europe, the Stoxx 600 Index slid 0.5 percent from the previous close. The UK’s FTSE 100 Index fell 0.3 percent, France’s CAC 40 shed 0.7 percent, and Germany’s DAX dropped 1.1 percent.

“I can’t see any panic selling. It is only just that people are not willing to buy,” Soeren Steinert, associate director for equities trading at Quoniam Asset Management in Frankfurt, told Bloomberg News. “There is no conviction that the market should be falling further.”

In a monthly report, the Bundesbank said Germany’s economy endured a tough second quarter.

“Industry shifted down a gear. As well as calendar effects, increased geopolitical tensions likely played a role in this,” it said.

While the German central bank was cautious, the International Monetary Fund said it’s still expecting the EU’s powerhouse to expand 1.7 percent in 2015, up from an earlier 1.6 percent forecast.

US Treasuries advanced, as did German bunds, as some investors sought refuge from the uncertainty in the safety of fixed-income securities. Yields on the benchmark 10-year bond fell one basis point to 2.47 percent.

Gold also received a bid for the same reason. Spot gold gained 0.2 percent to US1,312.50.

“It's Gaza, Israel, Iraq, Ukraine ... everything that has a sort of potential flashpoints that could resurface to be keeping gold above the US$1,300 mark," Societe Generale analyst Robin Bhar told Reuters.

So far the latest quarterly US earnings season has been solid. About 76 percent of S&P 500 companies that have posted results this season have beaten analysts’ estimates for profit, while 69 percent exceeded sales projections, according to data compiled by Bloomberg.

Companies scheduled to report this week include Apple, Facebook, Microsoft as well as Boeing and Caterpillar.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news