US stocks flat after Bank of England stimulus

By : AFP

Date: 4 August 2016 4:30pm WAT

Markets React To Federal Reserve Interest Rate Decision

Traders works on the floor of the New York Stock Exchange (NYSE) in New York City. Kena Betancur/Getty Images/AFP

NEW YORK, NY - JULY 27: Taders works on the floor of the New York Stock Exchange (NYSE) in New York City. Kena Betancur/Getty Images/AFP — NEW YORK, NY – JULY 27: Taders works on the floor of the New York Stock Exchange (NYSE) in New York City. Kena Betancur/Getty Images/AFP

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 percent, delivered a £170-billion ($227-billion, 200-billion-euro) stimulus package in the wake of the nation’s June 23 vote to leave the European Union.

British stocks rose 1.7 percent, 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 percent.

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