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

 


While you were sleeping: Equities slump

While you were sleeping: Equities slump

Aug 8 (BusinessDesk) – Wall Street fell as concern about the intensifying tension between the West and Russia over Ukraine overshadowed better-than-expected US jobs data and American corporate earnings including from 21st Century Fox.

In late afternoon trading in New York, the Dow Jones Industrial Average fell 0.38 percent, the Standard & Poor's 500 Index slid 0.34 percent, while the Nasdaq Composite Index retreated 0.15 percent. Investors fled into the perceived safety of US Treasuries and gold instead.

Declines in shares of UnitedHealth and those of Procter & Gamble, down 2.3 percent and 1.1 percent respectively, propelled the Dow lower.

"The uncertainty over the situation in Ukraine has overshadowed the positive economic data that we saw earlier today," John Manley, chief equity strategist at Wells Fargo Funds Management in New York, told Bloomberg News.

Indeed, the latest data underpinned the view that the US labour market continues to improve. Initial claims for unemployment benefits posted a surprise drop, sliding by 14,000 to a seasonally adjusted 289,000 for the week ended August 2, a Labor Department report showed.

The four-week average fell to 293,500, the lowest level since February 2006.

"If you have underlying fundamentals improving, you have individual companies doing well, you get some volatility as a result of macroeconomic worries, we'd view that as an opportunity to selectively buy," Greg Woodard, a strategist at Fairport, New York, at Manning & Napier, told Bloomberg News.

Shares of 21st Century Fox climbed, last up 4.7 percent, after the company posted quarterly profit that surpassed expectations after the market close on Wednesday, and Rupert Murdoch also stressed the company would not make a fresh bid for Time Warner.

In Europe, the Stoxx 600 Index finished the day with a 0.7 percent drop from the previous close. The UK’s FTSE 100 Index shed 0.6 percent, Germany’s DAX fell 1 percent, while France’s CAC 40 slumped 1.4 percent.

European Central Bank President Mario Draghi warned that the risks surrounding the economic outlook for the euro zone "remain downside."

"In particular, heightened geopolitical risks, as well as developments in emerging market economies and global financial markets, may have the potential to affect economic conditions negatively, including through effects on energy prices and global demand for euro area products," Draghi said in a statement at the end of a meeting of ECB policy makers.

"A further downside risk relates to insufficient structural reforms in euro area countries, as well as weaker than expected domestic demand," Draghi said.

Neither the ECB nor the Bank of England, whose policymakers also met on Thursday, made any fresh policy moves.

Shares of Adidas dropped 4.3 percent after the company posted disappointing second-quarter earnings and downgraded its prediction for operating profit this year, a week after it flagged several cuts to its outlook.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news