* S&P 500 little changed in early New York trading
* ECB expands and extends emergency COVID stimulus, as
expected
* Uncertainly remains over U.S. stimulus
(Updates with early U.S. markets activity, changes dateline;
previous LONDON)
By Caroline Valetkevitch
NEW YORK, Dec 10 (Reuters) - The euro climbed on Thursday as
the European Central Bank disappointed some investors hoping for
a bigger stimulus boost, while world equity indexes were near
flat in choppy trading amid uncertainty over fresh U.S. economic
stimulus.
The ECB increased the overall size of its PEPP stimulus
program by 500 billion euros ($605.7 bln) to 1.85 trillion euros
($2.2 trillion), in line with market expectations. It also
extended the program by 9 months to March 2022, with the aim of
keeping government and corporate borrowing costs at record
lows. The ECB also said it is monitoring the euro's exchange rate
with regard to its possible implications for the medium-term
inflation outlook.
Sterling weakened as investors became more cautious about
the risk of a no-deal Brexit. The euro was EUR= up 0.29% to $1.2116, while sterling
GBP= was last trading at $1.3286, down 0.82% on the day.
On Wall Street, the S&P 500 was little changed, with focus
on U.S. stimulus negotiations as an increase in weekly U.S.
jobless claims pointed to a stalling labor market recovery.
"Any good news on the stimulus could usurp everything else
and get us back to focusing on the potential for vaccines and
the economic energy that will get released," said Art Hogan,
chief market strategist at National Securities in New York. "But
for now, we are held hostage to the gridlock in Washington."
U.S. lawmakers approved a stopgap government funding bill
on Wednesday that would provide more time for negotiations. But
an agreement has remained elusive due to disagreements over aid
to state and local governments and business liability
protections.
The Dow Jones Industrial Average .DJI fell 8.16 points, or
0.03%, to 30,060.65, the S&P 500 .SPX gained 5.43 points, or
0.15%, to 3,678.25 and the Nasdaq Composite .IXIC added 90.81
points, or 0.74%, to 12,429.77.
The pan-European STOXX 600 index .STOXX lost 0.28% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.18%.
Earlier, S&P Dow Jones Indices said it would remove 10
Chinese companies from its equities indices and several others
from its bond indices overnight. In the bond market, longer-dated Treasury yields were
broadly lower.
Benchmark 10-year notes US10YT=RR last rose 3/32 in price
to yield 0.9328%, from 0.941% late on Wednesday.
Oil futures LCOc1 CLc1 were higher, with Brent rising
above $50 for the first time since March. Spot gold prices
XAU= were slightly lower.
($1 = 0.8255 euros)
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Rebound of major world markets https://tmsnrt.rs/370lXbY
ECB to rein in euro? https://tmsnrt.rs/2I7c2b3
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>