U.S. stocks edged slightly lower today as investors await new data on the state of the U.S. economy.
Performance of major stock indices
U.S. stocks edged slightly lower today as investors await new data on the state of the U.S. economy. The Dow Jones Industrial Average, which includes shares of 30 leading U.S. companies, lost 0.09 percent and closed at 48,416.56 points. The broader S&P 500 index fell 0.16 percent to 6,816.51 points, while the Nasdaq Composite, which includes many technology companies, declined 0.59 percent to 23,057.41 points.
The U.S. Department of Labor will publish data on job creation and the unemployment rate for October and November on Tuesday. The October figures are being released with a delay because their publication was disrupted by a temporary federal government shutdown. On Thursday, the government will then present a report on inflation developments in November.
Currency markets and central banks
On the foreign exchange market, the U.S. dollar weakened slightly against the euro and the Japanese yen, with developments in interest rates remaining in focus. Shortly after 10:00 p.m. CET, the single European currency was gaining around 0.1 percent against the dollar, trading near USD 1.1750. Against the Japanese yen, the dollar was down about 0.4 percent at around JPY 155.2 at the same time.
The Japanese currency is benefiting from expectations that the Bank of Japan could raise its key interest rate by a quarter of a percentage point to 0.75 percent on Friday. The European Central Bank (ECB) will announce its interest rate decision on Thursday. It is expected to keep its key deposit rate unchanged at two percent.
It is also expected that the Bank of England will cut its base interest rate by a quarter of a percentage point to 3.75 percent on Thursday. The British pound held steady against the dollar today and was trading at around USD 1.3375 shortly after 10:00 p.m. CET.
The U.S. Federal Reserve (Fed) last week, as expected, cut its key interest rate by a quarter of a percentage point to a range of 3.50 to 3.75 percent.
Source: ČTK
