Stocks Pare Gains With Euro as ECB Cuts Economy Forecast
U.S. stock futures and European shares pared gains and the euro turned lower versus the dollar as the European Central Bank cut its economic forecast for the region and detailed plans to buy bonds.
Futures on the Standard & Poor’s 500 Index expiring this month climbed 0.4 percent at 8:37 a.m. in New York after rising as much as 0.7 percent. The Stoxx Europe 600 Index climbed 0.7 percent, trimming a gain of 1.1 percent. The euro was little changed at $1.2600 after strengthening 0.4 percent earlier.
Futures extended gains earlier after a private report showed employers added more jobs than forecast last month, bolstering optimism in the economy before tomorrow’s government labor report. First-time unemployment claims were below forecast.
Companies in the U.S. added 201,000 workers in August, according to figures from Roseland, New Jersey-based ADP Employer Services. The median estimate in a Bloomberg survey called for an advance of 140,000. Estimates of the 41 economists ranged from increases of 90,000 to 170,000.
The S&P 500 in August climbed to its highest level on an intraday basis in more than four years, then failed to close at that milestone. The index has risen 12 percent this year and fluctuated near the 1,400 level for three weeks as European leaders worked to tame the region’s debt crisis and Federal Reserve Chairman Ben S. Bernanke said in Jackson Hole, Wyoming, last week he wouldn’t rule out more stimulus.
Daily moves in the benchmark gauge narrowed to 0.4 percent last month from 2.2 percent a year ago, when economic and policy changes battered investors.
Most U.S. stocks fell yesterday, sending the S&P 500 lower for a second day, following a lowered earnings forecast at FedEx Corp. and disappointing global economic data.
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