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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news