Wednesday, 14 September 2011 20:32
NEW YORK: Global equities and the euro erased gains on Wednesday as optimism over favorable comments for the creation of euro zone bonds faded and lackluster data on US retail sales gave investors pause.
Wall Street opened higher, tracking gains in European equity markets, as investors welcomed signs of growing cooperation in Europe to tackle the region's debt crisis.
But investors soon realized comments by the president of the European Union's executive body that it was presenting options for euro area bonds may not be enough to snuff the crisis.
Separate data showed US business inventories rose slightly less than expected in July, suggesting firms remained cautious about future demand at the start of the third quarter.
"Huge market turmoil had an obvious impact on retail sales at the same time job hires remain lackluster," said Peter Boockvar, equity strategist at Miller Tabak Co in New York.
Growth in US retail sales stalled in August ...