NEW YORK: Global stocks were little changed and the euro fell on Thursday as worries over worsening economic conditions in Europe and the United States clamped down appetite for riskier investments.
Nervous investors piled back into gold, German and US government bonds and other assets perceived as safe havens.
A US government report showing a surprise increase in weekly jobless claims and remarks by European Central Bank President Jean-Claude Trichet about downside risks to the euro zone's economy fueled fears that both the United States and Europe are at risk of slipping into recession.
"There is an obvious concern about growth in the US," said Jessica Hoversen, fixed income and currency analyst at MF Global in New York.
As US growth slows and Europe's debt crisis rages on, investors are waiting for moves from government officials and policymakers in the hope that they could provide the needed lift for the economy and investor confidence, despite doubts over the effectiveness of any such measures.
Fed Chairman Ben Bernanke will deliver a speech on the US economic outlook at 1:30 p.m. (1730 GMT) to the Economic Club of Minnesota, but he is unlikely to announce any new measures to boost the economy.
"This is an opportunity for him to prepare the market that something might be coming," Hoversen said.
US President Barack Obama will deliver a televised speech to Congress at 7 p.m. (2300 GMT), in which he is expected to propose tax cuts for middle-class households and businesses and new spending to repair roads, bridges and other infrastructure.
Later this week, G7 finance ministers and central bankers will convene in Marseilles, France with expectations that they will pledge support to help a struggling global economy.
At 10:24 a.m. (1424 GMT), the Dow Jones industrial average was down 16.65 points, or 0.15 per cent, at 11,398.21. The Standard & Poor's 500 Index was down 2.88 points, or 0.24 per cent, at 1,195.74. The Nasdaq Composite Index was up 2.08 points, or 0.08 per cent, at 2,551.02.
World stocks as measured by MSCI were up 0.1 per cent, helped by a 0.3 per cent gain in Tokyo's Nikkei. The MSCI world index has recovered somewhat from the August correction -- the worst monthly loss since 2008 -- but the index is 16 per cent below the 2011 highs hit in May.
The FTSEurofirst 300 index of top European shares was up 0.8 per cent, after trimming earlier gains on the ECB's decision to leave key rates alone.
In the wake of the ECB's decision, the euro fell to a session low of $1.3947.
In the bond market, benchmark 10-year German Bund yields touched a historic low of 1.82 per cent while the yield on US 10-year Treasuries fell near 2 per cent, not far above a 60-year low.
Spot gold prices jumped $35 at $1,851 an ounce.
Source: http://economictimes.indiatimes.com
Nervous investors piled back into gold, German and US government bonds and other assets perceived as safe havens.
A US government report showing a surprise increase in weekly jobless claims and remarks by European Central Bank President Jean-Claude Trichet about downside risks to the euro zone's economy fueled fears that both the United States and Europe are at risk of slipping into recession.
"There is an obvious concern about growth in the US," said Jessica Hoversen, fixed income and currency analyst at MF Global in New York.
As US growth slows and Europe's debt crisis rages on, investors are waiting for moves from government officials and policymakers in the hope that they could provide the needed lift for the economy and investor confidence, despite doubts over the effectiveness of any such measures.
Fed Chairman Ben Bernanke will deliver a speech on the US economic outlook at 1:30 p.m. (1730 GMT) to the Economic Club of Minnesota, but he is unlikely to announce any new measures to boost the economy.
"This is an opportunity for him to prepare the market that something might be coming," Hoversen said.
US President Barack Obama will deliver a televised speech to Congress at 7 p.m. (2300 GMT), in which he is expected to propose tax cuts for middle-class households and businesses and new spending to repair roads, bridges and other infrastructure.
Later this week, G7 finance ministers and central bankers will convene in Marseilles, France with expectations that they will pledge support to help a struggling global economy.
At 10:24 a.m. (1424 GMT), the Dow Jones industrial average was down 16.65 points, or 0.15 per cent, at 11,398.21. The Standard & Poor's 500 Index was down 2.88 points, or 0.24 per cent, at 1,195.74. The Nasdaq Composite Index was up 2.08 points, or 0.08 per cent, at 2,551.02.
World stocks as measured by MSCI were up 0.1 per cent, helped by a 0.3 per cent gain in Tokyo's Nikkei. The MSCI world index has recovered somewhat from the August correction -- the worst monthly loss since 2008 -- but the index is 16 per cent below the 2011 highs hit in May.
The FTSEurofirst 300 index of top European shares was up 0.8 per cent, after trimming earlier gains on the ECB's decision to leave key rates alone.
In the wake of the ECB's decision, the euro fell to a session low of $1.3947.
In the bond market, benchmark 10-year German Bund yields touched a historic low of 1.82 per cent while the yield on US 10-year Treasuries fell near 2 per cent, not far above a 60-year low.
Spot gold prices jumped $35 at $1,851 an ounce.
Source: http://economictimes.indiatimes.com
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