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

 


While you were sleeping: Stocks, oil drop

While you were sleeping: Stocks, oil drop

Aug 13 (BusinessDesk) - Equities on both sides of the Atlantic slid as investors eyed developments in Ukraine and Iraq and their impact on the global economy.

The price of oil dropped after the International Energy Agency cut its 2014 global oil demand growth forecast to 1.0 million barrels per day on lowerthanexpected deliveries in the second quarter and the International Monetary Fund's weaker outlook for economic growth.

“Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic Basin,” the IEA said in its Oil Market Report for August, Bloomberg News reported.

In late afternoon trading in New York, the Dow Jones Industrial Average shed 0.15 percent, the Standard & Poor’s 500 Index fell 0.39 percent, while the Nasdaq Composite Index dropped 0.64 percent.

Declines in shares of Chevron and Cisco Systems, down 0.9 percent and 0.8 percent respectively, led the Dow lower.

"We already know the Middle East is unstable and that Russia is sending an aid convoy to Ukraine, so this is all the continuation of a longer-term issue that has been boiling for a long time,” Malcolm Polley, president and chief investment officer of Stewart Capital Advisors in Indiana, Pennsylvania, told Reuters.

Shares of Kate Spade tanked, last down 25.7 percent to US$28.90 after rising as high as US$42.87 earlier in the day, as concern about shrinking margins overshadowed better-than-expected revenue.

On a post-earnings conference call on Tuesday, the company said it expects 2014 gross margins to decline 125 to 175 basis points from a year earlier, Reuters reported.

An auction of US three-year notes drew solid demand for safe-haven assets, reflecting concern about the impact of conflict in the Ukraine, Iraq, and Gaza.

“You’ll see a lot of demand stemming from geopolitical events,” Aaron Kohli, an interest-rate strategist at BNP Paribas in New York, a primary dealer, told Bloomberg News. “Investors are worried about the instability.”

In Europe, the Stoxx 600 ended the day with a 0.2 percent decline from the previous close. The UK’s FTSE 100 inched 0.01 percent lower, France’s CAC 40 dropped 0.9 percent, while Germany’s DAX sank 1.2 percent.

In Germany, a report showed investor confidence weakened for the eighth month in a row. The ZEW index of investor and analyst expectations plunged more than expected, sliding to 8.6 in August, from 27.1 in July. The euro weakened against the US dollar and the Japanese yen as a result.

“The drop in the ZEW index confirms the near-term downside risk for the German and euro-zone economies emanating from the Ukraine crisis,” Christian Schulz, senior European economist at Berenberg Bank in London, told Bloomberg News. “The ‘Putin factor’ could lead to more cautious investment plans for a while.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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