May 25, 2013
Global shares drop on US budget worries
US stocks fell for a fourth day today, but recovered most of their losses after the House of Representatives, in the barest sign of progress, said it would come back to work on avoiding the "fiscal cliff" this weekend.
The Dow Jones industrial average slipped 18.28 points, or 0.14 percent, to 13,096.31 at the close. The Standard & Poor's 500 Index declined 1.74 points, or 0.12 percent, to 1,418.09. The Nasdaq Composite Index dropped 4.25 points, or 0.14 percent, to close at 2,985.91.
Fresh concerns that the United States may fail to reach a deal to avoid growth-sapping fiscal measures weighed on European shares today, although most traders still felt an agreement would be reached.
The pan-European FTSEurofirst 300 index closed broadly flat at 1,137.60 points, although the euro zone's blue-chip Euro STOXX 50 index edged up by 0.4 percent to 2,659.95 points.Earlier small gains in Asia meant the MSCI index of world shares was up 0.25 percent and a 0.1 percent gain in US stock futures suggested Wall Street was also likely to start higher.
"There is still hope for a last-minute deal, otherwise we're in for a correction in January. People have already priced in an agreement. Without it, the market can't stay at these levels," a Paris-based trader said.