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US markets mixed, European indices up

25 June 2009 08:04 (UTC +04:00)

Baku- APA-Economics. The Federal Reserve’s assessment that the economy is on the mend gave little comfort to the stock market and bond prices fell after the Fed noted rising prices for commodities, AP reports.
The central bank’s decision Wednesday to leave a key lending rate at a low of zero to 0.25 percent wasn’t a surprise. Stocks pulled off their highs of the day to fluctuate in a narrow range.
Stocks fluctuated, as is typical after a Fed announcement. In late afternoon trading, the Dow Jones industrial average fell 48.52, or 0.6 percent, to 8,274.39. The Standard & Poor’s 500 index rose 2.66, or 0.3 percent, to 897.76, and the Nasdaq composite index rose 22.40, or 1.3 percent, to 1,787.32.
Although the Fed has held its target interest rate steady since late last year, its statements have touched off big moves in stocks. In January, the statement coincided with hopes for a plan for banks’ toxic assets; in March, the Fed announced it would start buying Treasurys; and in April, the Fed said it was seeing signs the recession is easing.
In other trading, crude oil fell 72 cents to $68.52 a barrel on the New York Mercantile Exchange.
The dollar was mixed against other major currencies. Gold prices rose.
About two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 763.2 million shares, compared with 821.6 million traded at the same point Tuesday.
The Russell 2000 index of smaller companies rose 3.94, or 0.8 percent, to 493.71.
Overseas stock prices advanced. Japan’s Nikkei stock average rose 0.4 percent. In Europe, Britain’s FTSE 100 rose 1.2 percent, Germany’s DAX index rose 2.7 percent, and France’s CAC-40 rose 2.2 percent.
Investors, many of whom have placed bets over the past several months on a late-year economic recovery, are on edge as the second half of 2009 approaches. The Dow is up 27.1 percent from the 12-year lows reached March 9, but the index has fallen about 5 percent since June 12.