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

 


While you were sleeping: Wall Street hits record

While you were sleeping: Wall Street hits record

Aug. 26 (BusinessDesk) - Equities on both sides of the Atlantic climbed, lifted by Burger King’s talks to buy Tim Hortons and expectations that the European Central Bank moved closer to additional measures to bolster the struggling euro-zone economy.

In late afternoon trading in New York, the Dow Jones Industrial Average added 0.43 percent, the Standard & Poor’s 500 index rose 0.50 percent, while the Nasdaq Composite Index gained 0.40 percent.

Earlier in the session the S&P 500 advanced as high as a record 2,001.95.

Gains in shares of JPMorgan Chase and those of Goldman Sachs, last up 1.8 percent and 1.7 percent respectively, propelled the Dow higher.

"European investors came in today with the mindset that we're going to have a more supportive fiscal and monetary policy stimulus, and therefore we ought to see better times ahead in terms of economic growth and corporate earnings,” Phil Orlando, chief equity market strategist at Federated Investors, in New York, told Reuters. "Europe is essentially driving the US.”

Europe’s Stoxx 600 Index finished the session with a gain of 1.1 percent. France’s CAC 40 rallied 2.1 percent, while Germany’s DAX climbed 1.8 percent.

At the end of this week, reports on euro-zone inflation and unemployment will draw scrutiny as ECB President Mario Draghi signalled his increasing concern about both at the US Federal Reserve’s annual central bank symposium in Jackson Hole, Wyoming, last Friday.

“Draghi is going more in the direction of [quantitative easing] and that is helping equity markets today,” Karim Bertoni, who helps manage US$3.3 billion at de Pury Pictet Turrettini in Geneva, told Bloomberg News.

It also pushed Germany’s two-year note yield below zero, dropping 3 basis points to minus 0.034 percent, after earlier touching minus 0.046 percent, the least since December 2012, according to Bloomberg.

Confidence among business leaders in Europe’s engine economy declined again this month, a report showed. The Ifo institute’s business climate index fell to 106.3 in August, from 108 in July, sliding for a fourth straight month.

In the US, the latest report on the housing market fell short of expectations, following a string of better-than-expected data last week. New home sales fell 2.4 percent to a seasonally adjusted annual rate of 412,000 units in July, according to the Commerce Department.

"We believe that ongoing volatility in housing will be one factor keeping the Fed from raising rates prematurely," Gennadiy Goldberg, an economist at TD Securities in New York, told Reuters.

Meanwhile, shares of Burger King Wordwide surged, last up 21 percent, after the company said it was in talks to buy Tim Hortons. The new company, which would be the world’s third-largest quick service restaurant, would have its headquarters in Canada, where the overall corporate tax rate is lower than in the US.

Shares of Tim Hortons jumped, last up 21.1 percent.

In other merger and acquisition activity, share of InterMune soared, last up 35.3 percent, after it was bought by Roche for US$8.3 billion.

“This acquisition will complement Roche’s strengths in pulmonary therapy,” Severin Schwan, CEO of Roche, said in a statement.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Christchurch: New Lyttelton Cruise Ship Berth To Be Built

A new $56 million cruise ship berth will be built in Lyttelton with the plans released by the Lyttelton Port Company today. More>>

ALSO:

Constructions Builds: Consents Top $2 Billion For The First Time

Building consents reached a record $2 billion in March 2017, boosted by new homes and several big non-residential projects, Stats NZ said today. This was up 37 percent compared with March 2016. More>>

Other Stats:

Health: Work Underway To Address Antimicrobial Resistance

As part of a global response the Ministries of Health and Primary Industries have today jointly published ‘Antimicrobial Resistance: New Zealand’s current situation and identified areas for action’ to respond to the changing pattern of antimicrobial resistance in New Zealand. More>>

ALSO:

Employment: Vodafone Announces Family Violence Policy To Support Team

From today, any of Vodafone’s 3,000 workers affected by family violence will be eligible for a range of practical support, including up to 10 additional days of paid leave per year. More>>

Burning Up Over Saturn: Cassini's Grand Finale

With propellant running low, NASA scientists are concerned that the probe might accidentally crash into one of Saturn’s nearby moons, which could contaminate it with Earthling bacteria stuck to the spacecraft. Instead, the spacecraft will be safely "disposed" in Saturn's atmosphere. More>>

ALSO:

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news