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

 


While you were sleeping: Ukraine tension lifts bonds

While you were sleeping: Ukraine tension lifts bonds

Aug. 29 (BusinessDesk) - Stocks fell, while US Treasuries rose, as concern about intensifying tension in Ukraine outweighed further evidence that the American economy is gathering strength.

In late afternoon trading in New York, the Dow Jones Industrial Average fell 0.21 percent, the Standard & Poor’s 500 index slipped 0.11 percent, while the Nasdaq Composite Index gave up 0.18 percent.

Declines in shares of Nike and Visa, down 1.1 percent and 1 percent respectively, led the Dow lower.

US Treasuries advanced, pushing yields on the 30-year bond 2 basis points lower to 3.08 percent, while yields on the 10-year note declined 2 basis points to 2.34 percent.

“The geopolitical concerns are overriding any kind of economic data,” Thomas di Galoma, head of fixed-income rates at ED&F Man Capital Markets in New York, told Bloomberg News. “It doesn’t look like it’s going to stop.”

US gross domestic product grew at a 4.2 percent annual rate in the second quarter, up from an initial estimate of 4.0 percent, according to the Commerce Department.

"The economy is in good shape and getting better," Joel Naroff, chief economist at Naroff Economic Advisers in Holland, Pennsylvania, told Reuters.

Separately, the National Association of Realtors’s pending home sales index increased 3.3 percent to 105.9 in July, the highest level since August 2013.

“Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” Lawrence Yun, NAR chief economist, said in a statement. “The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.”

“More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market,” Yun said.

In other positive data, the number of Americans filing for unemployment benefits fell 1,000 to 298,000 in the week ended August 23, according to the Labor Department.

In Europe, the Stoxx 600 Index finished the day with a 0.7 percent decline from previous close, as did France’s CAC 40. The UK’s FTSE 100 fell 0.4 percent, while Germany’s DAX slumped 1.1 percent.

A European Commission report showed that the euro-zone’s economic confidence dropped more than expected in July, while a separate report showed that German unemployment unexpectedly climbed in August.

The data underpinned concern about the euro-zone’s economy and bolstered expectations that the European Central Bank will add additional stimulus.

“The German economy is not in as good a shape as it was at the beginning of the year,” Michael Holstein, an economist at DZ Bank in Frankfurt, told Bloomberg.

(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