by Chuck Mikolajczak NEW YORK (Reuters) – World stock markets were lower on Thursday after European Central Bank President Mario Draghi failed to provide jittery markets with a specific stimulus package for the country’s fragile recovery. euro zone, while American markets stabilized after a recent massive sell-off. Although Draghi reiterated that the ECB remained ready to resort to other unconventional policy tools if necessary, the lack of details on the bank’s plan to buy guaranteed debt did not impress investors. Losses in Europe were considerable, with the FTSEurofirst 300 index falling 2.4 percent. But on Wall Street, the S&P 500 barely managed to halt a three-session slide, ending the session flat after falling to its lowest level since August 8. “People don’t need to panic, so you traded below your 50-day moving average – you’re still well above your 200-day moving average,” said Keith Bliss, senior vice president of Cuttone & Co in New York. “So you’re seeing buyers finally saying ‘it’s time to step up’.” Draghi reiterated that the ECB hopes the recently announced projects will add 1 trillion euros to its balance sheet. But weak demand for a new round of cheap loans last month is increasing pressure to be more aggressive. The Dow Jones industrial average fell 3.66 points, or 0.02 percent, to 16,801.05, the S&P 500 gained 0.01 points, or flat, to 1,946.17 and the Nasdaq Composite added 8.11 points, or 0.18 percent, to 4,430.20. The euro rose 0.3 percent, its biggest rise against the dollar in two weeks. “The euro rose not because of what Draghi said, but because of what he didn’t say,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. “We have not heard any significant language regarding an increase in the number of assets to be purchased, in other words, real quantitative easing.” Investors have become more cautious recently as they digest economic data and other news. Data released Wednesday showed German factory activity declined for the first time in 15 months and China’s manufacturing sector is barely growing. The first diagnosed case of Ebola in the United States added to the nervous investment climate. The 45-country MSCI world stock index fell 0.6%, its first four-day decline in two months, but still pared its decline after hitting a five-month low of 407.18 . Oil prices remained under pressure after price cuts from top producer Saudi Arabia added to an oversupply. Brent crude oil settled 0.8% at $93.42 after hitting a low of $91.55. U.S. crude rose 0.3% to $91.01 after falling to $88.18, its lowest level in nearly 18 months. [O/R] Markets are also grappling with the imminent end of the Federal Reserve’s massive monthly bond-buying program, raising questions about the timing of the Fed’s first interest rate hike in years. Global risk aversion pushed yields on the 10-year U.S. Treasury – the benchmark for global debt markets – as high as 2.38% on Wednesday. But on Thursday, the 10-year bonds pared their losses and were last down 10/32 in price, yielding 2.4357 percent. [US/] (Reporting by Chuck Mikolajczak; editing by Leslie Adler, Dan Grebler and Chizu Nomiyama)
