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

 

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