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

 


While you were sleeping: Eyes on ECB

While you were sleeping: Eyes on ECB

Aug. 28 (BusinessDesk) - Investors flocked to a US auction of US$35 billion in five-year notes as European bond yields sank to record lows amid bets that the European Central Bank will add more stimulus in an effort to prop up the flagging euro-zone economy.

“It was a fantastic auction,” Ray Remy, head of fixed income in New York at Daiwa Capital Markets America, one of 22 primary dealers obligated to bid at US auctions, told Bloomberg News. “What’s driving the US Treasury market is what’s going on in Europe. As Europe moves to lower yields, money is moving into the US Treasury market to take advantage of the bigger spread between the two.”

A report showed that a gauge of German consumer confidence dropped more than expected, the latest sign of concern about Europe’s key economy. And in Italy, Economy Minister Pier Carlo Padoan said the country must dowgrade its official growth forecasts.

ECB policy makers next meet September 4 amid elevated expectations of additional stimulus following ECB President Mario Draghi’s comments about the region’s declining inflation in Jackson Hole last week.

To be sure, the ECB is unlikely to take new policy action next week unless August inflation figures, due on Friday, show the euro zone sinking significantly towards deflation, Reuters reported, citing unnamed ECB sources.

"The barrier to QE is still very high," said one of the sources, all of whom requested anonymity, adding that discussion at the meeting was expected to centre on reinforcing existing policy measures of credit easing and liquidity provision, according to Reuters.

Wall Street stalled, holding the Standard & Poor’s 500 Index near record highs.

In late afternoon trading in New York, the Dow Jones Industrial Average inched 0.09 percent higher, while the Nasdaq Composite Index eked out a 0.06 percent gain. The Standard & Poor’s 500 index was unchanged at 1,999.98.

The Dow moved higher as gains in shares of UnitedHealth and Pfizer, up 2 percent and 1.1 percent respectively, outweighed declines in United Technologies and IBM, down 0.6 percent and 0.5 percent respectively.

“Many of the blocks are in place for the equity markets to make further progress,” Richard Hunter, the head of equities at Hargreaves Lansdown in London, told Bloomberg News.

Shares of Tiffany rose, last up 1.35 percent, after the jewelry retailer reported second-quarter profit that surpassed expectations and lifted its full-year earnings forecast.

"These healthy second quarter results reflected solid sales growth in our stores, particularly in the Americas and Asia-Pacific regions,” Michael Kowalski, Tiffany’s chief executive officer, said in a statement. “In addition, an improved gross margin was an important contributor to the earnings growth.”

In Europe, the Stoxx 600 Index ended the session 0.1 percent higher than the previous close, as did the UK’s FTSE 100. France’s CAC 40 closed with an advance of 0.04 percent. Germany’s DAX slipped 0.2 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news