Related News
Stocks fall as euro concerns continue
Source: Agencies |
December 1, 2010, Wednesday
|
Online Edition
Online Edition
STOCKS ended November on a down note yesterday, notching their first monthly loss since August.
The Dow Jones industrial average lost 46 points. It had been down as many as 110 points earlier in the day. The index pared some of its losses after President Barack Obama and Republican lawmakers promised to seek a compromise before the end of the year on extending tax cuts adopted during the presidency of George W. Bush.
Extending the cuts would motivate investors to hold stocks since they wouldn't be subject to higher capital gains taxes next year. It would also encourage companies to continue paying dividends, which are taxed at a more favorable rate.
The Dow ended November with a loss of 1 percent. It had rallied through September and October on hopes that a bond-buying program by the Federal Reserve would boost the economy.
The Dow reached its highest point of the year on Nov. 5, two days after the Fed announced its US$600 billion economic stimulus plan. Stocks have fallen since then on worries about Europe's debt troubles. Ireland on Sunday became the second European country after Greece to require a bailout this year.
The euro briefly fell below US$1.30 for the first time since mid-September after investors sold off government bonds from Spain, Portugal and Italy. The bailout of Ireland's banks hasn't been enough to assuage worries that other weak European countries will also need to be rescued.
John Briggs, a fixed income analyst at RBS, said the concerns about weak members of the euro zone are spreading faster than governments can react.
"It's becoming more of a system-wide issue and the currency decline continues to accelerate day after day," he said. "Until we get some kind of systemic response, it's likely to continue."
The Dow Jones industrial average fell 46.47, or 0.4 percent, to close at 11,006.02.
The Standard & Poor's 500 index fell 7.21 or 0.6 percent, to 1,180.55. The Nasdaq composite index dropped 26.99, or 1.1 percent, to 2,498.23.
The S&P 500 fell 0.2 percent in November, the Nasdaq 0.4 percent.
Economic reports yesterday did not present a clear picture of where the economy was headed. The Standard & Poor's S&P/Case-Shiller index showed that home prices are falling faster in the nation's largest cities. However, the Conference Board said its index of consumer confidence jumped to a five-month high in November.
The dollar rose 0.6 percent against an index of six other heavily traded currencies.
Bond prices rose, pushing their yields lower. The yield on the 10-year Treasury note fell to 2.79 percent from 2.83 percent Monday.
The Dow Jones industrial average lost 46 points. It had been down as many as 110 points earlier in the day. The index pared some of its losses after President Barack Obama and Republican lawmakers promised to seek a compromise before the end of the year on extending tax cuts adopted during the presidency of George W. Bush.
Extending the cuts would motivate investors to hold stocks since they wouldn't be subject to higher capital gains taxes next year. It would also encourage companies to continue paying dividends, which are taxed at a more favorable rate.
The Dow ended November with a loss of 1 percent. It had rallied through September and October on hopes that a bond-buying program by the Federal Reserve would boost the economy.
The Dow reached its highest point of the year on Nov. 5, two days after the Fed announced its US$600 billion economic stimulus plan. Stocks have fallen since then on worries about Europe's debt troubles. Ireland on Sunday became the second European country after Greece to require a bailout this year.
The euro briefly fell below US$1.30 for the first time since mid-September after investors sold off government bonds from Spain, Portugal and Italy. The bailout of Ireland's banks hasn't been enough to assuage worries that other weak European countries will also need to be rescued.
John Briggs, a fixed income analyst at RBS, said the concerns about weak members of the euro zone are spreading faster than governments can react.
"It's becoming more of a system-wide issue and the currency decline continues to accelerate day after day," he said. "Until we get some kind of systemic response, it's likely to continue."
The Dow Jones industrial average fell 46.47, or 0.4 percent, to close at 11,006.02.
The Standard & Poor's 500 index fell 7.21 or 0.6 percent, to 1,180.55. The Nasdaq composite index dropped 26.99, or 1.1 percent, to 2,498.23.
The S&P 500 fell 0.2 percent in November, the Nasdaq 0.4 percent.
Economic reports yesterday did not present a clear picture of where the economy was headed. The Standard & Poor's S&P/Case-Shiller index showed that home prices are falling faster in the nation's largest cities. However, the Conference Board said its index of consumer confidence jumped to a five-month high in November.
The dollar rose 0.6 percent against an index of six other heavily traded currencies.
Bond prices rose, pushing their yields lower. The yield on the 10-year Treasury note fell to 2.79 percent from 2.83 percent Monday.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
