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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news