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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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