Euro news disappoints Wall Street
Aug 03 2012
European leaders have gamely promised to keep tackling the continent's debt crisis - but the markets wanted much more.
Stocks sank across the US and Europe, the euro fell against the dollar and investors dumped bonds issued by the governments of Spain and Italy.
Investors had been expecting more immediate action from the European Central Bank and were disappointed by the plan's lack of details, especially considering the ECB president's pledge last week to do "whatever it takes" to keep the euro intact.
It was the second day in a row that markets were disappointed by a lack of decisive action from a major central bank. On Wednesday stocks closed lower after the Federal Reserve made only vague promises about its plans for trying to revive the US economy.
The Dow Jones industrial average fell 92.18 points to 12,878.88. The Dow had been down as much as 192 shortly after noon. The Standard & Poor's 500 index fell 10.32 to 1,365. The Nasdaq composite index lost 10.44 to 2,909.77.
It was the fourth day in a row of losses; US stocks have not risen since ECB President Mario Draghi's now-famous three-word promise a week ago.
Investors had been hoping for clear action from the ECB, such as a cut in interest rates or clear plans to buy more European government bonds, which could lower borrowing costs for troubled countries like Spain and Italy.
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