Page 25 - ARUBA TODAY

BUSINESS Friday 8 September 2017
A25

US stocks end mixed as banks stumble; health care climbs

By MARLEY JAY dipped 22.86 points, or 0.1
AP Markets Writer percent, to 21,784.78. The
NEW YORK (AP) — U.S. Nasdaq composite rose
stock indexes finished near- 4.55 points, or 0.1 percent,
ly back where they started to 6,397.87. The Russell 2000
Thursday as steep losses for index of smaller-company
banks and insurance com- stocks lost 3.52 points, or 0.3
panies were balanced out percent, to 1,398.67. Most
by gains in health care and of the stocks on the New
technology companies. York Stock Exchange rose.
Banks skidded as bond The dollar fell to a two-and-
yields reached their low- a-half-year low after the Eu-
est levels of the year, ropean Central Bank raised
which sent interest rates its economic growth fore-
down. Insurance compa- cast for the region this year.
nies plunged as investors That made the euro stron-
weighed the prospects of ger and the dollar weaker.
big losses caused by Hurri- “The European economy
cane Irma, which is hitting is arguably doing as well
the north Caribbean and is as ours, or better,” said De-
projected to reach Florida Clue.
this weekend. Payment Insurers slumped as Hur-
processing companies rose ricane Irma cut a path of
after Mastercard increased A miniature reproduction of Arturo Di Modica’s “Charging Bull” sculpture sits on display at a street devastation across the
its revenue forecasts, while vendor’s table outside the New York Stock Exchange, in lower Manhattan. U.S. stock indexes northern Caribbean, leav-
losses for Comcast and Dis- finished nearly back where they started Thursday as steep losses for banks and insurance ing at least seven dead
ney hurt media companies. companies were balanced out by gains in health care and technology companies. and thousands homeless,
(AP Photo/Mary Altaffer)
The economy “is going to as well as millions without
suffer a few dents from the ably good shape,” and If the storms have a notice- something investors want power. Reinsurance com-
storms,” said John DeClue, that won’t change even if able effect on the econ- to see. panies fell sharply because
chief investment officer for damage from hurricanes omy, he added, that will The Standard & Poor’s 500 many of their policies are
U.S. Bank Private Wealth Harvey and Irma slows eco- help make sure the Federal index edged down 0.44 for catastrophic losses
Management. But he said nomic growth for a few Reserve moves slowly in points to 2,465.10. The Dow such as those caused by a
the economy “is in remark- months. raising interest rates. That’s Jones industrial average hurricane.q

ECB could announce stimulus scale-back as soon as next month

the ECB will soon decide eurozone economy. While raised fears of a chronic
on the “calibration” of its growth has picked up to downward spiral in wages
policy instruments beyond 0.6 percent in the second and prices. Draghi says
2017. quarter, annual inflation that danger is now over.
“We think we are going in August was still only 1.5 Draghi said, however, that
to be ready for much of percent. a “very substantial” degree
what we have to decide Phasing out bond of support from monetary
in October,” said Draghi. purchases would begin policy was still needed
“If we are not, then we the withdrawal of stimulus for the time being. He has
postpone.” measures aimed at been reluctant to spell
Investors took Draghi’s overcoming the aftershocks out the timing and pace
statement as a hint that of the Great Recession and of the phase-out of the
the bank may outline a the eurozone’s crisis over bond purchases for fear
strategy on reducing its high bank and government of sending the euro and
monthly asset purchases debt. The economy has market interest rates higher
at its Oct. 26 meeting. The shown steady growth since ahead of the fact. That
euro jumped 0.9 percent to the second quarter of kind of market reaction
$1.2022. 2013 but suffered through would blunt the impact of
President of the European Central Bank Mario Draghi comes to a Strong economic growth a stretch of low, even the stimulus before it has
news conference following a meeting of the governing council in the eurozone has subzero, inflation
in Frankfurt, Germany, Thursday, Sept. 7, 2017. that run its full course. q
(AP Photo/Michael Probst) ratcheted up expectations
By DAVID McHUGH is reassessing the bond- that the bank, which sets
AP Business Writer buying program, which interest rates for the 19
FRANKFURT, Germany (AP) is credited with boosting countries that use the euro,
— The European Central growth by reducing will soon start to phase out
Bank could be ready as borrowing rates, and could its bond-buying program.
soon as next month with announce changes as The stimulus involves
plans to finally start scaling early as next month. the bank purchasing 60
back its extraordinary At a press conference after billion euros ($72 billion)
stimulus efforts as the the bank’s 25-member of bonds a month in the
eurozone’s economy governing council decided markets in order to keep
gathers speed. to leave its interest rates interest rates low and get
President Mario Draghi said and bond-buying program inflation up to its goal of just
Thursday that the bank unchanged, Draghi said under 2 percent, a level
considered healthy for the