US stocks fall amid concerns over delayed economic recoveryJune 11th, 2009 - 5:47 am ICT by IANS
New York, June 11 (DPA) US stocks fell Wednesday amid a rise in commodity prices, which sparked concerns that higher interest rates and inflation would delay economic recovery.
Pricing worries erased any relief brought by Chrysler’s deal with the Fiat Group, giving the Italian carmaker control of its best assets and pulling the US icon out of bankruptcy less than two months after it sought court protection.
Fiat will start with a 20-percent share of the new Chrysler Group, but could increase that stake to 35 percent as it transfers fuel-efficient technologies and meets other conditions of the agreement.
Meanwhile, the Federal Reserve said Wednesday that US businesses fear the economy will remain flat through the rest of the year.
In its latest Beige Book, which surveys business expectations across the country, the US central bank said all regions reported the economy “remained weak or deteriorated further” since mid-April.
But the Fed said five of the 12 regions “noted that the downturn trend is showing signs of moderating”.
The US economy has been in recession since December 2007, the longest downturn since the 1930s.
Continental Airlines Inc and United Airlines parent UAL Corp fell six percent as crude oil prices rose to more than $71 per barrel. Crude prices plunged nearly 80 percent since about a year ago, but have started rising in the last two months.
The blue-chip Dow Jones Industrial Average lost 24.04 points, or 0.27 percent, to 8,739.02. The broader Standard & Poor’s 500 Index fell 3.28 points, or 0.35 percent, to 939.15. The Nasdaq shed 7.05 points, or 0.38 percent, to 1,835.08.
The dollar rose marginally against the euro to 71.54 euro cents from 71.11 euro cents Tuesday. The dollar also climbed against the Japanese currency to 98.18 yen from 97.38 yen.
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