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While you were sleeping: Wall St slides

Tuesday 7th March 2017

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Equities on both sides of the Atlantic moved lower as investors reassessed valuations amid the prospect that the US Federal Reserve will increase interest rates at next week’s meeting.

Fed Chair Janet Yellen last Friday also signalled a potentially steeper pace of further rate hikes this year. 

A Commerce Department report showed US factory goods orders rose 1.2 percent in January, beating economists' expectations.  

US Treasuries fell, pushing yields on the 10-year note three basis points higher to 2.51 percent, while the greenback strengthened. 

Wall Street weakened. In 1.16pm trading in New York, the Dow Jones Industrial Average fell 0.2 percent, while the Nasdaq Composite Index declined 0.4 percent. In 1.01pm trading, the Standard & Poor’s 500 Index slid 0.4 percent.

The Dow fell, led by declines in shares of JPMorgan Chase and those of Intel, recently down 1.3 percent and 1.1 percent respectively. 

Tyson Foods shares declined as a deadly form of bird flu was found in a Tennessee operation that supplies the largest US chicken producer. This is the first confirmed case of highly pathogenic H7 avian influenza in commercial poultry in the US this year, the United States Department of Agriculture’s Animal and Plant Health Inspection Service said in a statement.

“Based on the limited scope known to us at this time, we don’t expect disruptions to our chicken business and plan to meet our customers’ needs,” Worth Sparkman, a spokesman for Tyson, told Bloomberg.

State officials quarantined the affected premises and birds on the property will be killed to prevent the spread of the disease, the USDA said, adding that birds from the flock will not enter the food system.

Shares of Tyson Foods traded 3.4 percent weaker as of 12.07pm in New York.

In Europe, the Stoxx 600 Index ended the day with a decline of 0.5 percent from the previous close.The UK’s FTSE 100 Index retreated 0.3 percent, while France’s CAC 40 Index gave up 0.5 percent, and Germany’s DAX Index dropped 0.6 percent.

Shares of Deutsche Bank closed 3.2 percent after the Germany’s biggest lender on Sunday announced it is seeking to raise about 8 billion euros by issuing new shares as part of a plan to overhaul its business.

“The question is ... whether the bank will need more yet again in a few years,” Stefan de Schutter, a trader at Frankfurt-based Alpha, told Reuters. “ Until now, none of the restructuring measures have borne fruit.”

Bucking the trend, shares of Standard Life climbed 5.7 percent after it agreed to acquire Aberdeen Asset Management to form one of Europe’s biggest fund managers. 

In other deal news, shares of PSA Group of France closed 2.7 percent higher in Paris after it agreed to buy Opel from General Motors.

 

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

BusinessDesk.co.nz



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