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


While you were sleeping: Stocks, bonds fall before Fed

While you were sleeping: Stocks, bonds fall before Fed

July 30 (BusinessDesk) – Wall Street weakened as investors awaited more details from US Federal Reserve policy makers on paring back their bond buying at a two-day meeting starting tomorrow.

In late afternoon trading in New York, the Dow Jones Industrial Average fell 0.15 percent, as declines in shares of Bank of America, last 1.3 percent weaker, and Chevron, last 1 percent lower, weighed on the index. The Standard & Poor's 500 Index shed 0.24 percent, while the Nasdaq Composite Index dropped 0.18 percent.

US Treasuries also declined, pushing yields on the 10-year bond 4 basis points higher to 2.60 percent.

"There's a concern that whatever the FOMC says or does will lead to a dramatic reaction in the market, much like we saw in June," Stephen Massocca, managing director at Wedbush Equity Management in San Francisco, told Reuters.

Investors are also eyeing further guidance from the European Central Bank and the Bank of England as their officials are set to meet as well in the coming days.

In Europe, the Stoxx 600 Index edged higher, ending just ahead of the previous close. France’s CAC 40 and the UK’s FTSE 100 were also steady. Germany’s DAX advanced 0.2 percent.

In terms of US economic data, the National Association of Realtors' index of pending home sales fell 0.4 percent to 110.9 in June. The decline was smaller than anticipated.

"This latest move down in pending home sales may reflect some weakening in activity related to the recent increase in mortgage rates as well as limited available inventory for sale," Daniel Silver, an economist at JPMorgan in New York, wrote in a research note, according to Reuters.

The key reports this week are yet to come. There is second-quarter US gross domestic product on Wednesday and monthly government jobs data on Friday. GDP probably grew at a 1 percent annualised rate last quarter, according to a Bloomberg survey.

A slew of earnings will also help set the tone. So far quarterly earnings have been decent.

Of the 265 companies in the S&P 500 that have posted results so far this reporting season, 73 percent have exceeded analysts’ estimates for profit and 56 percent have beaten sales projections, data compiled by Bloomberg show.

There was plenty of merger and acquisition activity to start the week. Perrigo said it agreed to buy Irish drug maker Elan for US$8.6 billion, Omnicom Group agreed to merge with Publicis Groupe of France, while Canada's Hudson's Bay said it agreed to buy Saks for US$2.4 billion.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>


Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing


House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>