Dow down again on US jobless claims; NZ$ down too; Allied woes worsen
Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news the Dow closed down a further 0.6% overnight on unexpectedly weak US jobless claims figures that suggest the US economic recovery is stalling.
Jobless claims rose to their worst levels in 5 months.
This helped drag the New Zealand dollar, given it tends to move in tandem with US stocks and appetites for risk globally. It fell to 70.6 US c and is now down from over 73 USc earlier in the week.
The New Zealand dollar fell against the Australian dollar also.
The BusinessNZ-BNZ PMI survey of manufacturing showed contraction in the sector for the first time in 14 months as new orders from overseas fell sharply.
Meanwhile, the news just gets worse for Allied Farmers.
Standard and Poor's announced yesterday it had cut Allied Nationwide's rating to CC and now saw a significant risk of default because of cashflow problems.
Allied Farmers shares fell more than 30% to a record low of 2.5 cents and are now a fraction of the 20.7c paid by Hanover Finance investors when they swapped their debentures for 1.9 billion new shares in Allied.
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4 Comments
Isn't today the day that the REINZ run their monthly 'lipstick on a turd' competition?
Aaah dreadful sales volume and median down $3500 to $349,000 - third month in four to show falls. Just getting going now...........
I suggest a deep rouge will be today's tint.
And this idiot wants to be Minister of Finance.....
," Labour finance spokesman David Cunliffe said yesterday. "It (the govt) desperately hopes the private sector will finance projects it lacks the vision, courage or resources to do itself."
Doh....what madness is this....does this bum filling a seat in Parliament not understand even basic economics....has he been reading only comics for the last 24 months....
She'll be right, Maverick. She's up 8% today @ 2.7 cents. Volume's a bit of a worry @ 3 x average, but hey, 'think positive' and everything works out your way.....
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