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Stocks Fall on Trichet’s Spending Remarks

European Central Bank President Jean Claude Trichet caused a ripple in US stock index futures this morning when he stated that governments will scale-back stimulus spending. Futures on the Standard & Poor’s 500 Index slid 0.8 percent at 7:18 a.m. in New York, while Europe’s Dow Jones Stoxx 600 Index dropped 0.9 percent.

“Not all our liquidity measures will be needed to the same extent as in the past,” Trichet said at a conference in Frankfurt today. “Any non-standard measure whose continuation would pose a threat to the achievement of price stability must be undone promptly and unequivocally.”

Bloomberg [1]

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Scott Boyd

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