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


While you were sleeping: Equities in a holding pattern

While you were sleeping: Equities in a holding pattern

August 16 (BusinessDesk) – Wall Street was mixed after a report showed a surprise contraction for manufacturing in the New York area in August.

Separate reports showed that industrial production increased more than expected in July, while home-builder sentiment in August climbed to the highest level in more than five years.

And the consumer price index was steady in July for a second month, defying expectations for an increase – and leaving open the door for the US central bank to provide fresh stimulus to the economy.

In late afternoon trading in New York, the Dow Jones Industrial Average slipped 0.05 percent. The Standard & Poor's 500 Index eked out a 0.04 percent gain and the Nasdaq Composite Index rose 0.27 percent.

“The outlook is not particularly favourable,” Millan Mulraine, a senior US strategist at TD Securities in New York, told Bloomberg News. “Slowing global growth momentum will certainly eat into the global demand for US exports and manufacturing in particular.”

That was clearly illustrated by Deere & Co and Staples which both posted quarterly results that fell short of expectations. Shares of Deere were last 5.9 percent weaker, while those of Staples shed 15.1 percent.

Staples lowered its full-year outlook for profit and sales, citing slower growth in the US and weakness in Europe.

"The weakness in Europe was not a surprise, but the deterioration in the US was more significant than anticipated," Janney Capital Markets analyst David Strasser told Reuters.

To be sure, Abercrombie & Fitch's quarterly profit surpassed estimates. The stock was last up 9.1 percent. Shares of Target also advanced, last up 1.9 percent, after the company lifted its annual profit forecast.

Indeed, some took the recent US economic data as an indication that the Federal Reserve is less likely to increase its monetary stimulus soon. US Treasuries declined, lifting 10-year yields toward the highest level in nearly three months.

“We definitely have seen some better economic numbers and it’s put a dent in QE3 expectations,” Thomas Roth, senior Treasury trader in New York at Mitsubishi UFJ Securities USA, told Bloomberg. “The market’s at risk for the first time in a long time.”

Meanwhile, yields on German 10-year bunds rose after Bloomberg reported that European Economic and Monetary Affairs Commissioner Olli Rehn signalled Spain is weighing a request for a sovereign bailout.

“The Spanish government has an open mind on this issue, but no decision has been made” on whether to request a bailout, Rehn told Bloomberg yesterday. “We stand ready to act if there is a request.”

Europe's Stoxx 600 Index edged 0.1 percent lower from yesterday's close. Benchmark stock indexes in Germany, the UK and France declined as well.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>


Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>


MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>


Mediaworks: Reaches Agreement To Sell TV Operations To Discovery, Inc.

New Zealand’s largest independent commercial broadcaster MediaWorks and the global leader of real-life entertainment Discovery Inc. (“Discovery”) are pleased to announce they have reached a binding agreement regarding the sale of MediaWorks’ ... More>>


Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>


NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>


Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>


SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>


FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>