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

 


While you were sleeping: US pending home sales drop

While you were sleeping: US pending home sales drop

July 29 (BusinessDesk) - Wall Street crawled higher after a disappointing report on housing underpinned concern about the industry’s struggle to recover a day before the US Federal Reserve is starting a two-day policy meeting.

The index of pending homes sales unexpectedly dropped, sliding 1.1 percent in June, after climbing 6 percent in May, according to a National Association of Realtors report.

“Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved,” Lawrence Yun, NAR chief economist, said in a statement. “However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates.” 

In late afternoon trading in New York, the Dow Jones Industrial Average gained 0.09 percent, the Standard & Poor’s 500 index increased 0.11 percent, while the Nasdaq Composite Index eked out a 0.03 percent gain. 

Gains in shares of UnitedHealth and Exxon Mobil, up 1.2 percent and 1.1 percent respectively, propelled the Dow higher.

Investors are waiting for the end of the Fed meeting on Wednesday to gauge policy makers’ take on the economy and the timing of an interest rate increase. Also, reports on second-quarter US gross domestic product and on the jobs market are due on Wednesday and Friday respectively.

Then there are second-quarter corporate earnings to digest too.

“It’s another big week of earnings, with the jobs report on Friday,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities, told Bloomberg News. “Sentiment in the short-term term is a little more cautious.”

The US economy probably expanded at a 3.0 percent annual rate in the second quarter, according to a Reuters survey of economists. The world’s largest economy shrank 2.9 percent in the first quarter.

"Pretty much across the board, components will look better," Jim O'Sullivan, chief US economist at High Frequency Economics in Valhalla, New York, told Reuters. “ I do think we can sustain a 3 percent growth number for the next couple of quarters.”

But some are worried the pace of recovery will fall short of expectations.

“We should expect a rebound in the second quarter, but we don’t think the rebound is going to be as strong as the market expects,” Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas, told Bloomberg News.

In Europe, the Stoxx 600 Index finished the session with a 0.2 percent decline. The UK’s FTSE 100 Index inched 0.05 percent lower, while Germany’s DAX fell 0.5 percent. France’s CAC 40 rose 0.3 percent.

Shares in Lloyds Banking Group closed flat in London after the bank agreed to pay 226 million pounds in penalties for its role in manipulating benchmark interest rates.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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