Tuesday, September 20, 2011

Wall Street ends flat as early gains evaporate

US stocks ended little changed on Tuesday as investors waited to see if the US Federal Reserve would offer more economic stimulus and if Greece made progress in talks to avoid a default.

The Dow Jones industrial average gained 7.65 points, or 0.07 percent, to 11,408.66 at the close. The Standard & Poor's 500 Index fell 2.00 points, or 0.17 percent, to 1,202.09. The Nasdaq Composite Index lost 22.59 points, or 0.86 percent, to 2,590.24.

European stocks ended higher, led by buoyant defensive shares, but lacklustre trading volumes and nagging fears of contagion from the Greek debt turmoil signalled the rebound could be short-lived.

The FTSEurofirst 300 index of top European shares ended 2 percent higher at 934.16 points, with volumes representing only about 80 percent of the index's 90-day daily average.

The Nikkei average fell after Standard & Poor's cut Italy's debt rating, raising more worries about the global impact of continued financial turmoil in the euro zone, though expectations of stimulus from the US Federal Reserve cushioned the blow.

The Nikkei dropped 1.6 percent to 8,721.24 after a market holiday yesterday. The broader Topix index declined 1.7 percent to 755.04. The Nikkei slipped below its 25-day moving average of 8,791, only one session after it had risen above the mark for the first time since early August.