The Organization for Economic Cooperation and Development said in its latest economic outlook that the U.S. economic growth is set to rebound strongly in the second quarter as the scars of a brutally cold winter fade, but inflation pressures will remain tame through 2015. The OECD forecasted that U.S. gross domestic product expanding at a 3.9% annual pace this quarter, and it said it expects growth to maintain a brisk pace for the remainder of the year as well.
In Ukraine, government forces yesterday had four deaths in fighting that may have killed about 30 rebels, acting Interior Minister Arsen Avakov said on his Facebook account. German Chancellor Angela Merkel and U.S. President Barack Obama have set a May 25 presidential election in Ukraine as the trigger for possible economic sanctions against Russia if it fails to pull back its support for separatists. More than 30 administration buildings, police stations, security-services offices and other installations are currently blocked by rebels in the eastern Donetsk and Luhansk regions, the Interior Ministry said yesterday. Neighboring Moldova put its borders on alert.
The latest statistics data from China showed that economy of the world second largest remained sluggish. Data from HSBC Holdings PLC showed China's manufacturing sector was still contracting in April. The HSBC Manufacturing Purchasing Managers' Index, a gauge of industrial activities at private and export-oriented enterprises, reached 48.1 in April, up slightly from 48 in March but remained below the key 50 level that separates contraction from expansion on a monthly basis. Last week, though, the official manufacturing index, which covers more big state companies than the HSBC measure, showed that activity strengthened slightly to 50.4 in April from 50.3 in March, with the key new-orders segment showing improvement. China has set a target of economic growth of around 7.5% this year but many economists have projected that actual growth could fall short of that. The Chinese economy grew 7.4% in the first quarter from a year earlier, down from 7.7% in the final quarter of last year.
Among Asian bourses, Australian share market finished the session modest higher on Tuesday, 06 May 2014, with shares in consumer related companies led rally. The benchmark S&P/ASX200 and the broader All Ordinaries each jumped by 0.35%% to 5481.40 and 5462.70, respectively. Market turnover in Australia was, however, light with 1.42 billion shares changed hands worth of A$2.89 billion in Australian share market.
Consumer Discretionary stocks were amongst the best performer in Australian market, with Apparel group Pacific Brands, led rally with rise of 6.1% to A$0.525 after brokerage reports stated the company may have got a bump from the better than expected sales results of customer David Jones which carries many of its labels including Bonds.
Department store owner David Jones (DJS) was up 0.3% to A$3.96 after recording its third straight quarter of sales growth. Sales jumped by 4.1% to A$407.2m last quarter, with all states and key categories (departments) delivering sales growth. Online sales have jumped by 190% over the year. The Foreign Investment Review Board (FIRB) has approved the $4 per share, $2.15bn takeover offer by South Africa's Woolworths today. DJS has recommended shareholders accept the offer at a meeting likely to be held next month.
Seek (SEK) advanced 2.4% to A$17.29 after the said it will launch an initial public offering for Zhaopin in the United States, without disclosing the value of the offer or its timing. Zhaopin is the second largest online recruitment services provider in China, which Seek believes is set to become the worlds biggest online employment market place. Seek paid $US132.8 million in February last year to increase its stake in Zhapoin from 55.5% to 78.2%.
Rare earths producer Lynas was the worst performing stock in the ASX 200, dumping 9.1% to A$0.15 after emerging from a trading halt to update the market on plans for a A$30 million equity raising and debt restructure. Rare earths miner announced a share purchase plan to raise up to A$40m to boost working capital during ramp-up at the company's Malaysian Lynas Advanced Materials Plant (LAMP).The plan will allow existing shareholders to purchase additional shares at a discount to the market price for a particular period without paying brokerage fees. LYC said that the new shares will rank equally with existing shares on issue. The price will be a 17.5% discount to the average price during the five days up to and including the shortfall date, likely to be Tuesday 27 May.
The Reserve Bank has left the cash rate at a record low of 2.5% for the ninth consecutive month, while upgrading its view on the domestic economy, hinted the possibility that the unemployment rate has already peaked in the current economic cycle. In the board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target, RBA governor Glenn Stevens said in the statement following the RBA's board meeting on Tuesday afternoon.
Australian Bureau of Statistics data showed the trade surplus narrowed by more than expected in March as exports fell. The surplus was A$731 million in March, down from a surplus of A$1.257 billion in February.
In New Zealand, equities on the New Zealand shares fell for a second day, with the NZX 50 Index extending is slide from a record. Energy stocks fell, paced by Meridian Energy, MightyRiverPower and Contact Energy, on concern missteps by National ministers have dented the party's re-election prospects, the benchmark index fell 25.356 points, or about 0.5%, to 5174.897. Within the index, 22 stocks fell, 16 rose and 12 were unchanged. Turnover was $147 million.
Prime Minister John Key has been forced to accept Maurice Williamson's resignation as a minister while opposition parties have called for the resignation of justice minister Judith Collins over her support for Oravida, an exporter to China that is linked to her husband and is a National Party donor.
In China, Mainland China share market finished higher, as gains in telecom, technology and materials shares were more than offset losses in developers and financials. The benchmark Shanghai Composite Index finished the session 0.68 point higher at 2028.04, after touching an intraday low of 2021.49 and intraday peak of 2038.70.
Market turnover was, however, limited in Chinese market amid lingering concern about economic growth slowdown and worries that new share sales will divert funds from existing equities. On Monday evening, the China Securities Regulatory Commission unveiled prospectuses of 30 initial public offering (IPO) applicants, bringing the total number to 241 since April 19.
The move marked the approaching restart of new IPOs, stirring concerns about the bearish Chinese stock market. Fear among investors of IPOs is common in China's stock market, as the country's IPO approval system has been long criticized as it allows unqualified companies to enter the capital market which has caused huge losses to individual investors.
Shares of technology companies gained the most in the Chinese market, buoyed by bargain hunting following recent selloff. GoerTek surged 3.2%.
Shares of property developers extended decline for second day in row after two private surveys showed Chinese home prices rose at a slower pace in April, adding to signs of cooling in the country's property market. Prices of new homes in 288 major cities rose 6.9% in April compared with the same month a year earlier, easing from a rise of 8.1% in March, a poll by real estate services firm E-House China showed. That was the slowest rise in 14 months and marked the sixth consecutive month of slowing price rises. A separate survey by China Real Estate Index System (CREIS) showed average prices in the 100 biggest cities rose 0.1% month on month in April, versus March's 0.4% rise, still the 23rd straight month of gains. Compared with a year earlier, home prices rose 9.1% in April, moderating from a 10% gain in March and marking the fourth consecutive month of slowing year-on-year gains, CREIS said.
Among developers, Poly Real Estate, the nation's second-largest developer by market value, lost 1.4% while Gemdale retreated 2.2%.
Baotou Steel advanced 7.1% after the China Securities Regulatory Commission approved a private share placement by the company to buy mining assets from its parent company.
In India, key benchmark indices continued to trade firm in mid-afternoon trade. On tracking higher European and Asian stocks and after firm finish for US stocks overnight. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 5 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 279.86 crore on Monday, 5 May 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 73.66 points or 0.33% to 22,518.78. The CNX Nifty was up 15.90 points or 0.24% to 6,715.25.
Housing Development Finance Corporation (HDFC) dropped 0.59% after announcing Q4 results. The company's consolidated net profit rose 15.91% to Rs 2414.70 crore on 11.34% rise in total income to Rs 12296.02 crore in Q4 March 2014 over Q4 March 2013.
April data indicated that business activity across the Indian private sector fell again Markit Economics said today, 6 May 2014. The seasonally adjusted HSBC India Composite Output Index rose from 48.9 in March to 49.5. Despite being consistent with a marginal rate of reduction, this was the second consecutive sub-50.0 reading recorded. Manufacturing production increased at a softer rate in April, whereas service sector output decreased further.
Elsewhere in the Asia Pacific region, Malaysia's KLSE Composite edged down 0.01%. Straits Times index rose 0.2%. Taiwan's Taiex index was up 0.47%. Indonesia's Jakarta Composite Index dropped 0.17%. Stock markets in Hong Kong and Seoul were closed today to mark the day traditionally considered to be the birthday of Siddhartha Gautama, the Indian prince who founded Buddhism. Japan market was also closed today for celebrating Greenery Day holiday.
Powered by Capital Market - Live News
