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US market indices drop

21 May 2009 07:43 (UTC +04:00)

Baku- APA-Economics. US stocks gave up a big early advance to finish moderately lower on Wednesday after the Federal Reserve reduced its economic outlook for 2009 and bank stocks sank.
The central bank said it expects some business conditions to improve in coming months, but it also lowered its assessment of the economy for the full year and said unemployment could reach nearly 10 per cent.
Stocks had been fluctuating throughout much of the afternoon as rising commodity prices drove energy and material stocks higher, while bank stocks gave up early gains.
Energy stocks showed some of the biggest gains after oil topped $US62 a barrel for the first time since November.
But financials turned lower after enthusiasm about Bank of America Corp’s ability to raise billions of dollars by selling stock couldn’t erase fears that banks are still a long way from scrubbing all the stains off their balance sheets.
The Dow Jones industrials fell 52.81, or 0.62 per cent, to 8,422.04. The Standard & Poor’s 500 index slipped 4.66, or 0.51 per cent, to 903.47 and the Nasdaq composite index fell 6.7, or 0.39 per cent, to 1,727.84.
Europe’s stock markets mostly rose, but London bucked the trend as investors sold shares to take profits despite a Wall Street rally and an upbeat outlook for the financial sector.
London’s FTSE 100 index closed down 13.84 points, or 0.31 per cent, at 4,468.41 points.
The DAX rose 79.32 points, or 1.6 per cent, to 5,038.94.
The CAC 40 index gained 28.41 points, or 0.87 per cent, to 3,303.37.
Tokyo stocks rose for a second straight day as investors looked beyond a record contraction in the domestic economy and focused on prospects for a recovery.
The benchmark Nikkei-225 index gained 54.35 points, or 0.59 per cent, to 9,344.64.