The euro gained against the dollar yesterday en route to its best monthly performance in more than a year, while US stocks were flat in muted trading, with investors reluctant to make large bets ahead of key US jobs figures today.
US data continued to paint a mixed picture of the world’s largest economy. A measure of business activity in the US Midwest rose in January to its strongest since April, but an earlier report indicated a rise in US jobless claims in the latest week.
The euro hit a peak of $1.3593 yesterday before pulling back slightly. The Federal Reserve’s promise of continued support was widely expected to keep downward pressure on the dollar.
The eurozone common currency was last at $1.3579 and up 2.9 percent this month against the dollar, its best month since October 2011.
The dollar, meanwhile, edged higher against the yen to 91.16 yen.
The Dow Jones industrial average was down 34.98 points, or 0.25 per cent, at 13,875.44. The Standard & Poor’s 500 Index was down 4.81 points, or 0.32 per cent, at 1,497.15. The Nasdaq Composite Index was down 4.74 points, or 0.15 per cent, at 3,137.57.
The S&P 500 has gained five per cent this month, its best month since October 2011, using Reuters data.
The pan-European FTSEurofirst 300 was down 0.2 per cent, as was the MSCI world index.
Disappointing results from heavyweights AstraZeneca and Royal Dutch Shell also took their toll on market sentiment.
Falling German retail sales, stagnant French consumer spending and a big quarterly loss at Deutsche Bank dashed hopes of a rebound for European shares, which had their biggest daily fall of the year on Wednesday. Those stocks are still up 3.7 percent this month.
Spot gold drifted down to $1,663.80 an ounce after hitting a one-week high on Wednesday, while oil prices inched up 19 cents to just under $115.09 per barrel, still well above their starting price this year of $110 a barrel.
US light sweet crude oil fell 66 cents, or 0.67 per cent, to $97.28 per barrel.