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US: Stocks flat after Bank of England stimulus

Thursday, August 4, 2016 - 22:06

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[NEW YORK] Wall Street stocks opened flat Thursday after the Bank of England enacted a more aggressive monetary stimulus package than analysts expected.

The BoE slashed interest rates to a record low 0.25 per cent, delivered a £170-billion (S$304 billion) stimulus package in the wake of the nation's June 23 vote to leave the European Union.

British stocks rose 1.7 per cent, while the pound declined.

The US market's muted reaction reflects misgivings that excessive central bank policy is "driving investors into riskier assets," said Briefing.com analyst Patrick O'Hare.

Five minutes into trade, the Dow Jones Industrial Average was 18,362.70, up less than 0.1 per cent.

The broad-based S&P 500 slipped less than 0.1 per cent at 2,163.58, while the tech-rich Nasdaq Composite Index was also slightly negative at 5,159.19.

AFP

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