Stocks on Wall Street stumbled after US Federal Reserve chairman Ben Bernanke said no moves were imminent to bolster the recovery despite a "somewhat weaker outlook" for the economy.In his semi-annual monetary policy testimony to the Senate Bank
Stocks on Wall Street stumbled after US Federal Reserve chairman Ben Bernanke said no moves were imminent to bolster the recovery despite a "somewhat weaker outlook" for the economy.
In his semi-annual monetary policy testimony to the Senate Banking Committee, the Fed chief said the central bank would remain flexible in light of the "unusually uncertain" economic outlook.
The guidance from Mr Bernanke comes as investors have been weighing corporate earnings that so far have generally come in above estimates against a raft of disappointing economic reports.
Stock prices dropped immediately after the testimony and the slide continued until the close.
The Dow Jones Industrial Average finished 109.43 points, or 1.1%, down at 10,120.53. The S&P 500 index fell 1.3% to 1069.59 and the Nasdaq Composite dropped 1.6% to 2187.33.
Other markets: Europe up, Asia mixed
European stocks rose, boosted by well-received U.S. earnings and further evidence of a pickup in merger activity.
Basic-resource shares led the advance as copper futures hit three-week highs. Miner Kazakhmys added 7% and steel giant ArcelorMittal rose 2.2%, while the Stoxx Europe 600 for the sector gained 2.6%.
The pan-European Stoxx 600 index closed up 1.2% at 249.24. The UK's FTSE 100 index rose 1.5% to 5214.64, France's CAC-40 index gained 0.7% to 3493.92 and Germany's DAX added 0.4% to 5990.38.
Most Asian markets finished higher as steel stocks rallied on news China is aiming to consolidate the local industry while Japanese shares were hurt on fears that the strong yen would hurt profits.
Japan's Nikkei Stock Average shed 0.2% to 9278.83, but Hong Kong's Hang Seng Index advanced 1.1% to 20487.23 and China's Shanghai Composite rose 0.3% to 2535.39, stretching its winning run into a third straight session.
Australia’s S&P/ASX ended 0.2% higher at 4412.75, India’s Sensex closed up 0.5% at 17,977.23, Korea’s Kospi rose 0.7% at 1748.78.
Against the trend, Singapore’s Straits Times fell 0.8% to 2926.09 and Singapore’s Taiex fell 0.1% to 7701.29.
Commodities: Oil down, gold up
Crude futures dropped after a US government report showed across-the-board gains in oil and fuel inventories, a reversal after two weeks of tightening supplies.
Light, sweet crude for September delivery traded 49USc, or 0.6%, lower at $US77.09 a barrel in New York. The August contract expired on Tuesday at $US77.44 a barrel. Brent crude on the ICE futures exchange traded 29USc, or 0.4%, lower at $US75.93 a barrel.
Gold futures were slightly higher as investors wanted to buy riskier holdings.
The most actively traded gold contract for August delivery was up $US2.80, or 0.2%, at $US1194.50 an ounce in New York.
Currencies: Dollar up, euro down
The US dollar advanced against the euro and other major currencies after Dr Bernanke focused his comments on the economy's problems and underlined the Fed's willingness to take action if needed.
The euro fell to $US1.2764, after being above $US1.28 before Dr Bernanke's remarks and from $US1.2886 late on Tuesday. Earlier this week, the euro was unable to extend a push above the $1.30 level against the dollar.
The dollar fell slightly versus the Japanese yen to buy ¥87.11, compared with ¥87.45. The UK pound declined to $US1.5167, down from $US1.5271.
