The S&P 500 index retreated from near a seven-month high today after weaker-than-expected January US retail sales data curbed investors’ appetite for risky assets. US retail sales rose less than expected in January as consumers cut back on car purchases and shopped less online.
The disappointing data added to concerns stemming from Moody’s downgrade Monday of ratings on six euro-zone countries.
» The Dow Jones industrial average was down 28.01 points, or 0.22 percent, at 12,846.03. The Standard & Poor’s 500 Index was down 3.97 points, or 0.29 percent, at 1,347.80. The Nasdaq Composite Index was down 10.23 points, or 0.35 percent, at 2,921.16.
In Europe, the euro rose to a session high and shares reversed early losses after a key German economic indicator bolstered hopes that Europe’s largest economy was recovering and eased debt fears spurred by a Moody’s downgrade of six of the region’s nations.
Germany’s ZEW Indicator of Economic Sentiment suggested the economic recovery, which slowed at the end of last year, is back on track and that analysts are less fearful now about the impact of the region’s debt crisis on the growth outlook.
The euro rose to $1.3205 from around $1.3185 before the ZEW survey was released. German Bund futures sank to a session low of 138.14, down 9 ticks on the day, having stood flat ahead of the release.
The FTSEurofirst 300 index turned flat at 1,071.22 points, having traded in the red ahead of the survey release, largely in response to Moody’s announcement it may cut the AAA ratings of France, Britain and Austria, while it downgraded Italy, Portugal, Spain, Slovakia, Slovenia and Malta. .
Japan’s Nikkei share average rose to end at its 200-day moving average after the Bank of Japan unexpectedly eased policy by increasing its asset-buying programme to help the economy mired in deflation and hurt by a strong yen.
The benchmark Nikkei is up 7 percent so far this year as a brightening outlook for the U.S. economy and an injection of 489 billion euros of three-year loans by the European Central Bank to boost liquidity outweighed disappointing Japanese corporate earnings.
buenosairesherald.com