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

 

While you were sleeping: Scotland spooks markets

While you were sleeping: Scotland spooks markets

Sep. 9 (BusinessDesk) - Equities on both sides of the Atlantic fell, along with oil and gold, while the US dollar climbed to a 14-month high against the euro on optimism about the American economy and concern about a vote for Scottish independence.

A poll showed that supporters of Scottish independence are gaining traction ahead of a September 18 referendum. A YouGov survey for the Sunday Times newspaper showed 51 percent approved of Scotland’s independence from the United Kingdom.

"The speed with which the polls have flipped has clearly been a shock to a lot of people," Adam Myers, European head of FX strategy at Credit Agricole in London, told Reuters.

The British pound tumbled, sliding 1.3 percent against the greenback.

“If they were to vote ‘Yes’ then sterling could drop another 10 percent so the tail risk is big,” Graham Davidson, a foreign-exchange trader at National Australia Bank in London, told Bloomberg News.

The US dollar also benefited from the optimistic view on the US economy, while elsewhere—in China and Europe—the pace of growth is faltering.

Last Friday’s jobs report, while showing the pace of growth in US payrolls fell short of expectations for August, failed to alter the view that the American economy continues to gather steam.

“Other indicators are still showing that the US economy will strengthen in the second half of this year," Martin Schwerdtfeger, a foreign exchange strategist at TD Securities in Toronto, told Reuters. "The payroll number did not change that.”

In late afternoon trading in New York, the Dow Jones Industrial Average fell 0.25 percent, the Standard & Poor’s 500 Index dropped 0.49 percent and the Nasdaq Composite Index slipped 0.12 percent.

Declines in shares of Exxon Mobil and Wal-Mart, down 1.6 percent and 1.3 percent respectively, led the Dow lower.

Oil slid, pushing Brent crude below US$100 a barrel for the first time since 2013, amid concern that weakness in China and Europe will hurt demand.

Shares of Boeing jumped, last up 2. 8 percent, after Ryanair said it agreed to buy up to 200 new Boeing 737 MAX 200 aircraft worth up to US$22 billion at current list prices.

In Europe, the Stoxx 600 ended the session with 0.4 percent drop from the previous close. The UK’s FTSE 100 Index and France’s CAC 40 both fell 0.3 percent. Germany’s DAX rose 0.1 percent.

A report showed that China’s imports posted a surprise drop last month, declining 2.4 percent from a year earlier, and underpinning concern about the world’s second-largest economy. Exports rallied 9.4 percent.

“Global oil demand remains soft,” John Kilduff, a partner at Again Capital, a New York-based hedge fund that focuses on energy, told Bloomberg News. “China’s imports being down are another sign of softening. Any sign of a slowdown there has a major impact on the market.

Meanwhile, Barclays cut 2,700 jobs in its investment bank this year as part of a plan unveiled in May to axe 7,000 positions over three years, the head of the business, Tom King, said on Monday, according to Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



BusinessNZ: Third Snapshot Report Reveals $9.5 Billion Business Investment In Climate Action

Signatories to the Climate Leaders Coalition have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses, as revealed in their third anniversary snapshot report released today... More>>

Digitl: The home printer market is broken
Printers are more of a security blanket that a serious aid to productivity. Yet for many people they are not optional.
Even if you don’t feel the urge to squirt ink onto dead trees in order to express yourself, others will insist on printed documents... More>>


Serious Fraud Office: Commences Enquiries Into Allegations Of COVID-19 Wage Subsidy Fraud
The Serious Fraud Office has commenced a number of enquiries into alleged abuse of the Government’s COVID-19 Wage Subsidy. Director Julie Read said the allegations relate to multiple complex cases of potential fraud that have been referred to the agency following extensive investigations ... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>



Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>


Transpower: Releases Independent Report Into Events Of August 9
Transpower’s Chief Executive Alison Andrew has today released an independent report into the grid emergency of August 9 when insufficient generation was available to meet demand, leading to some customers being disconnected... More>>