US stocks opened slightly higher today, after the European Central Bank cut interest rates to record lows and a flurry of economic data indicated the US economy was steadily improving. Both the Dow and S&P 500 touched record intraday highs after the ECB’s surprise move but later eased.
The Dow Jones industrial average fell 8.7 points, or 0.05 percent, to 17,069.58, the S&P 500 lost 3.07 points, or 0.15 percent, to 1,997.65, and the Nasdaq Composite dropped 10.28 points, or 0.22 percent, to 4,562.29. The Standard & Poor’s energy industry index ended off 1.29 percent as oil prices dropped.
European stock markets surged and the euro sank today after the European Central Bank surprised by cutting already ultra-low interest rates to prop up a struggling economy.
An index of European shares jumped more than 1 percent to its highest level since 2008, while the euro hit a 14-month low against the dollar at $1.2921, breaking below the key technical resistance point of $1.30.
Although it later pared losses to trade at $1.2944, the euro was still off 1.55 percent in what was the currency’s biggest one-day percentage decline since November 8, 2011.
The FTSEurofirst 300 index of top European shares hit its highest level since early 2008, at 1,403.63 points, before closing up 1.1 percent to 1,400.99.
Meanwhile, Japanese stocks fell snapping a three-day winning streak as most investors took profits from the recent gains after they quickly priced in the Bank of Japan’s decision to maintain its massive monetary stimulus and its upbeat view on the economy.
The Nikkei share average dropped 0.3 percent to 15,676.18, retreating from a seven-month high of 15,829.38 hit yesterday.
The broader Topix dropped 0.4 percent to 1,296.39, and the JPX-Nikkei Index 400 also fell 0.4 percent to 11,761.71.
Source: Buenos Aires Herald