Thursday, July 28, 2011

Buyers exit market before House debt plan vote

US stocks faded to end mostly lower, with investors skeptical a key vote by Congress would lead to a deal to avoid a US default.

The Dow Jones industrial average ended down 62.44 points, or 0.51 percent, at 12,240.11. The Standard & Poor's 500 Index was down 4.22 points, or 0.32 percent, at 1,300.67. The Nasdaq Composite Index finished up 1.46 points, or 0.05 percent, at 2,766.25.

European shares ended higher on Thursday, snapping three consecutive days of losses on renewed hopes that the US debt crisis will be resolved.

The pan-European FTSEurofirst 300 index of top shares closed up 0.1 percent at 1,089.24 points, but has lost 1.8 percent so far this week on concerns about the U.S. debt talks.

The Nikkei stock average fell sharply to close below its 200-day moving average, as the market grew increasingly nervous about whether a deadlock in talks on the US debt ceiling could be solved to avoid default before next week's deadline.

The benchmark Nikkei extended losses in the afternoon on selling from hedge funds to drop 1.5 percent, its largest percentage fall in more than a month. It ended at

9,901.35, below its 200-day moving average of 9,921 in the first decisive break of the average in nearly a month. The broader Topix index finished down 1.3 percent at 848.37.