Global equities mixed on Fed, ECB moves

new york — US stocks ticked higher on Thursday after Europe’s central bank became the latest to spell out how it will close the spigot on the emergency stimulus it’s flooded the market with in recent years.

More evidence also arrived to show that the US economy is improving after retail sales rose the most in six months, and the S&P 500 was on pace for its fourth gain in the last five days.

The S&P 500 was up 7 points, or 0.3 per cent, at 2,783, as of 9:50 a.m. Eastern time. The Dow Jones industrial average gained 67, or 0.3 per cent, to 25,268, and the Nasdaq composite rose 41, or 0.5 per cent, to 7,736.

Next up on the global calendar is

dealers are anticipating the eCB to lay the groundwork for winding down the stimulus package David Madden, Analyst at CMC Markets

the Bank of Japan, which meets Friday on interest-rate policy.

European stocks were up more than US indexes, with France’s CAC 40 rising 1.2 per cent and Germany’s DAX up 1.1 per cent. The FTSE 100 in London gained 0.6 per cent. In Asia, Japan’s Nikkei 225 index dropped 1 per cent, South Korea’s Kospi sank 1.8 per cent and the Hang Seng in Hong Kong lost 0.9 per cent.

Stocks from developing economies continued their struggles, which have been compiling since the spring. Investors worry that higher US interest rates will hurt emerging-market economies, and the MSCI Emerging Markets index fell 0.8 per cent

US retail sales jumped in May after shoppers spent more at home and garden stores, gas stations and restaurants. Economists say economic activity is likely picking up following a slowdown in growth during the first quarter of the year.

The yield on the 10-year Treasury fell to 2.95 per cent from 2.98 per cent late Wednesday. It gave up all its gains from the prior day, when the Federal Reserve surprised some investors by speeding up its timetable for rate increases.

The dollar fell to 110.34 Japanese yen from 110.55 yen late Thursday. The euro fell to $1.1658 from $1.1773, and the British pound fell to $1.333 from $1.3358.

Meanwhile, Indian equities fell for the first time in four days after the Fed raised borrowing costs and struck a hawkish tone in its latest policy statement.

The benchmark S&P BSE Sensex declined 0.4 per cent to 35,599.82 at the close in Mumbai, while the NSE Nifty 50 dropped 0.5 per cent. — AP/ Bloomberg