U.S. Stock Futures Rise as ECB Cuts Rate to Record Low
By Sofia Horta e Costa - Nov 7, 2013 7:52 AM ET ..
U.S. stock futures rose, after the Dow Jones Industrial Average closed at a record yesterday, as the European Central Bank lowered interest rates to fight a looming deflation risk.
Futures on the Standard & Poor’s 500 Index (SPX) expiring next month rose 0.4 percent to 1,772.4 at 7:51 a.m. in New York. The Dow average rose to a record yesterday and the S&P 500 closed at a one-week high as Fed officials said economic weakness warrants continued stimulus from the central bank. Contracts on the Dow added 83 points, or 0.5 percent, to 15,766 today.
The European Central Bank cut its benchmark interest rate to a record low after a drop in inflation to the slowest pace in four years threatened its mission to keep prices stable.
ECB President Mario Draghi lowered the benchmark interest rate to 0.25 percent from 0.5 percent, using one of his remaining interest-rate cuts to bolster the economy.
Investors are also watching U.S. data to gauge the health of the world’s largest economy after the Federal Reserve said last week it needs to see more evidence of sustained improvement before slowing its $85 billion monthly asset purchases.
Bloomberg.com
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