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

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news