May 19, 2013
Global stocks edge lower as central bank rally pauses
Stocks in the United States and Europe on Monday gave back some of last week's huge gains as investors began to question whether recent action by both the European Central Bank and Federal Reserve would be enough to revive global economic growth.
US stocks fell in light trading after a rally that drove the S&P 500 last week to its highest level in nearly five years and as falling oil prices hit energy shares.
The Dow Jones industrial average ended down 40.27 points, or 0.30 percent, at 13,553.10. The Standard & Poor's 500 Index was down 4.58 points, or 0.31 percent, at 1,461.19. The Nasdaq Composite Index lost 5.28 points, or 0.17 percent, at 3,178.67.
European stocks fell from 14-month highs as traders cashed in gains awaiting clarification on whether Spain will seek financial aid to tackle its debt crisis.
The FTSEurofirst 300 index of European shares closed 0.3 percent lower at 1,116.58 points after hitting highs not seen since July 2011 on Friday, boosted by stimulus pledges by the European Central Bank and the U.S. Federal Reserve.
In Asia, Japan's Nikkei average climbed 1.8 percent on Friday to its highest level in three weeks, gaining a foothold above 9,000 after bold plans for stimulus from the US Federal Reserve boosted risk appetite and lifted battered cyclical stocks.
The Nikkei advanced 164.24 points to 9,159.39 in heavy volume, helping to hoist the benchmark well clear of its 200-day moving average at 9,002.87. The broader Topix index rose 1.7 percent to 756.88.