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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news