Stocks sent lower Thursday

Posted on Aug 2, 2012 in Business | 0 comments

U.S. stocks sank Thursday on the second consecutive day of disappointing news from a major central bank.

European Central Bank President Mario Draghi last week sent stocks higher with his remark that the ECB would do “whatever was needed to preserve the euro.” In Frankfurt, Germany, Thursday, Draghi said the ECB’s Governing Council had elected to keep the key lending rate at 1 percent and stood ready to take other measures in the future.

Policy makers at the U.S. Federal Reserve, although with less implied promise of changes, announced they would stick with their established policies Wednesday, which also disappointed investors.

In early afternoon Thursday, the Dow Jones industrial average lost 157.08 points, or 1.21 percent, to 12,813.98. The Standard and Poor’s 500 index shed 16.4 points, or 1.23 percent, to 1,358.20. Tech-heavy Nasdaq composite index dropped 21.19 points, 0.73 percent, to 2,899.02.

The benchmark 10-year treasury note rose 195/32 , sending yields to 1.4659 percent.

The euro fell to $1.2164 from Wednesday’s $1.2227. Against the yen, the dollar fell to 78.26 yen from 78.44 yen.

In Tokyo, the Nikkei 225 index added 0.13 percent, 11.33, to 8,653.18.

In London, the FTSE 100 index lost 0.88 percent, 50.52, to 5,662.30.

Copyright 2012 by United Press International