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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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