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

 


While you were sleeping: Carney signals stimulus

While you were sleeping: Carney signals stimulus

July 1 (BusinessDesk) - Stocks rose, while the British pound weakened, as Bank of England Governor Mark Carney signalled the central bank will likely ease monetary policy in the coming months to offset the impact of the UK’s decision to leave the European Union.

“The economic outlook has deteriorated and some monetary policy easing will likely be required over the summer,” Carney said.

The pounds slid 1.5 percent against the US dollar.

“The comments clearly signal that the Bank of England has decided to loosen monetary policy to support growth,” Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ in London, told Bloomberg. “And it will look through a temporary period of higher inflation resulting from a sharp decline in the pound. BOE easing will reinforce the weakening trend for the pound.”

Stocks however climbed. Europe’s Stoxx 600 Index ended the session with a gain of 1 percent from the previous close. Germany’s DAX index rose 0.7 percent, France’s CAC 40 index increased 1 percent, while the UK’s FTSE 100 index rallied 2.3 percent.

“Central banks will flood the market throughout the summer with easy money to make sure no real big accident happens,” Benno Galliker, a trader at Luzerner Kantonalbank in Lucerne, Switzerland, told Bloomberg. “The expectation of easy monetary policy across the world is one of the things that works well for the stock market and most European companies aren’t affected that much by Brexit because they trade with China and the US mainly.”

Wall Street also took note. In 2.25pm New York trading, the Dow Jones Industrial Average added 1.3 percent, while the Nasdaq Composite Index gained 1.1 percent. In 2.09pm trading, the Standard & Poor’s 500 Index increased 1.1 percent.

US Treasuries declined, pushing yields on the 10-year note five basis points higher to 1.52 percent.

Advances in shares of General Electric and those of Intel, up 2.8 percent and 2.3 percent respectively recently, spearheaded the gains in the Dow.

Shares of Visa dropped, last 3.3 percent weaker, for the only percentage drop in the Dow in afternoon trading, after a federal court rejected an anti-trust settlement. That opened the door to years of fresh litigation. Shares of MasterCard also slid, down 3.5 percent as of 2.46pm in New York.

Shares of Hershey rallied after the Wall Street Journal reported that Mondelez International made a US$23 billion bid for the chocolate maker that would create the world’s biggest candy company.

Shares of Hershey jumped, trading 15.2 percent higher at US$111.87 as of 12.27pm in New York. Shares of Mondelez also gained, trading 4.3 percent higher in New York.

Tigress Financial Partners analyst Philip Van Deusen told Reuters he expected the offer price to increase, given the rise in Hershey shares. "I think (US$107) is a good starting place," he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news