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

 

While you were sleeping: Korean tension hurt stocks

While you were sleeping: Korean tension hurt stocks

November 24 (BusinessDesk) - Equities on Wall Street and in Europe dropped as tension between North Korea and South Korea escalated while concerns about debt-related troubles in the euro zone failed to fade away. U.S. Treasuries rose.

A North Korean attack on a South Korean island killed two soldiers and set houses ablaze, prompting South Korea to return fire and threaten military strikes. The clash sent the iShares MSCI South Korea Index Fund 5.5% lower and rattled financial markets worldwide.

"We're seeing a knee-jerk reaction to Korea but the underlying story is still the European debt crisis and contagion fears," John Doyle, strategist at Tempus Consulting in Washington, told Reuters.

In early afternoon trading, the Dow Jones industrial average declined 1.34%, the Standard & Poor's 500 Index lost 1.43% and the Nasdaq Composite Index dropped 1.68%.

Bucking the trend was J Crew Group Inc which jumped more than 16% after the retailer agreed to a US$2.86 billion buyout by two private equity firms.

U.S. Treasuries rose as investors sought the perceived safety of fixed-income securities.

The yield on the benchmark 10-year note fell seven basis points to 2.74% at 11.44am in New York, according to BGCantor Market Data.

Thirty-year bond yields fell four basis points to 4.17%. Two-year note yields declined four basis points to 0.44%.

Concern about the European Union’s most indebted nations persisted.

National benchmark indexes dropped in all 18 western European markets as investors doubted that Ireland’s request for a bailout would end the troubles in the euro zone.

EU officials estimated that a rescue package for Ireland might amount to about 85 billion euros (US$114 billion), Bloomberg News reported, citing a two officials familiar with the talks.

Meanwhile, Greece pledged new fiscal measures to comply with a 110 billion euro bailout and international lenders said that more help would be available if needed when the three-year rescue scheme expired.

"What we are saying to the markets is we know there could be a problem (for Greece). Don't worry about it, if it proves to be a problem we'll deal with it," IMF mission chief for Greece, Poul Thomsen, told Reuters in an interview.

In Europe, the Stoxx 600 shed 1.5% to 263.62 at the 4.30pm close in London, dropping for a second straight day.

The euro also extended its decline. The euro was down 1.8% on the day at US$1.3376.

The greenback gained 0.91% against a basket of currencies that make up its major trading partners. Even so, the U.S, currency shed 0.35% to 82.99 yen.

Bank of Ireland Plc plummeted 25% as Irish Prime Minister Brian Cowen said he would seek national elections early next year.

Gold fell 0.4% to US$1,360.15 an ounce by 1212 GMT, from US$1,366.09 late on Monday.

U.S. gold futures rose 0.1% to $1,359.40.

"As for gold, the downside is likely to remain well supported as uncertainty over euro zone economies remains and further weakness in the single currency cannot be ruled out," Andrey Kryuchenkov, analyst at VTB Capital, told Reuters.

"Should troubles in the monetary union escalate as optimism over the Irish bailout evaporates, we could well see a renewed run to gold's safe haven appeal."

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:

Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: