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

 

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
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news