Thursday, July 14, 2011

Bernanke halts Wall Street rally

US stocks fell as Fed Chairman Ben Bernanke backed off hints additional near-term stimulus could be on the way, removing a possible catalyst from a market already facing plenty of obstacles.

The Dow Jones industrial average slid 54.49 points, or 0.44 percent, to close at 12,437.12. The Standard & Poor's 500 Index shed 8.85 points, or 0.67 percent, to finish at 1,308.87. The Nasdaq Composite Index dropped 34.25 points, or 1.22 percent, to end at 2,762.67.

European stocks ended lower, losing ground for the fourth time in five sessions as Moody's warning on US debt and rising Italian bond yields despite a well-bid debt auction rattled investors.

The FTSEurofirst 300 index of top European shares closed 0.9 percent lower at 1,089.35 points.

The Nikkei stock average fell but did not decisively break a major support after Moody's said it may cut the United States' triple-A credit rating, sending the dollar near four-month lows and pressuring exporters. The benchmark Nikkei lost 0.3 percent to 9,936.12, after falling at one stage to as low as 9,884.00, beneath support at its 200-day moving average at 9,900. The broader Topix shed 0.4 percent to 856.88.