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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news