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

 


While you were sleeping: Rate chatter rises

While you were sleeping: Rate chatter rises

Aug 21 (BusinessDesk) - Wall Street advanced, while US Treasuries fell as investors await Federal Reserve Chair Janet Yellen’s speech this Friday at the annual gathering of the world’s top central bankers in Jackson Hole for her take on the outlook for higher interest rates.

Minutes of the latest Federal Open Market Committee meeting, held July 29-30, showed that US policy makers were optimistic about the progress of the pace of recovery in the world’s largest economy and that there was a possibility they might have to lift the benchmark interest rate sooner than expected.

“Participants generally agreed that labour market conditions and inflation had moved closer to the Committee's longer-run objectives in recent months, and most anticipated that progress toward those goals would continue,” according to the minutes.

“Moreover, many participants noted that if convergence toward the Committee's objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated,” the minutes showed.

In late afternoon trading in New York, the Dow Jones Industrial Average added 0.43 percent, the Standard & Poor’s 500 Index gained 0.24 percent, while the Nasdaq Composite Index eked out an advance of 0.01 percent. Earlier in the session the S&P 500 fell as low as 1,977.68 and rose as high as 1,987.68.

Gains in shares of Home Depot and Boeing, up 3 percent and 1.6 percent respectively, led the Dow higher.

US Treasuries fell. Yields on the five-year note rose six basis points to 1.63 percent.

“The gist of this sounds much more aggressive than what we expected,” Brian Edmonds, the head of interest-rates trading in New York at Cantor Fitzgerald, one of 22 primary dealers that trade with the Fed, told Bloomberg News of the Fed minutes.

The US dollar strengthened, rising 0.4 percent against the euro and advancing 0.7 percent against the yen.

The minutes heighten the anticipation for Yellen’s speech on Friday in Jackson Hole, Wyoming.

In Europe, the Stoxx 600 edged lower to finish the session at 335.3. Germany’s DAX fell 0.2 percent, France’s CAC 40 slid 0.3 percent, while the UK’s FTSE 100 declined 0.4 percent.

Here, minutes from the latest Bank of England meeting earlier this month showed two of the nine monetary policy committee members wanted to lift the Bank Rate, currently at 0.5 percent, by 25 basis points, which is being seen as an unexpected challenge to Governor Mark Carney.

“For two members, in particular, economic circumstances were sufficient to justify an immediate rise in Bank Rate,” according to minutes of the Aug 6-7 meeting released on Wednesday. “These members noted that the continuing rapid fall in unemployment alongside survey evidence of tightening in the labour market created a prospect that wage growth would pick up.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

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:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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