Stocks in U.S. Fluctuate as Investors Watch for European Steps on Economy

By Michael P. Regan - Oct 6, 2011 8:38 PM GMT+0700

U.S. stocks swung between gains and losses as investors dissected the European Central Bank’s plans to tame the sovereign debt crisis. The euro weakened, European shares trimmed an earlier rally and oil reversed gains.

The Standard & Poor’s 500 Index was little changed at 1,143.57 at 9:37 a.m. New York time after rallying 4.1 percent over the previous two days, its best back-to-back gain in a month. Apple Inc. slipped 0.7 percent after co-founder Steve Jobs died. The Stoxx Europe 600 Index trimmed a 2 percent rally in half. The euro weakened against nine of 16 major peers. The pound slid against 15 of 16 counterparts after the Bank of England unexpectedly added stimulus to help the economy.

European Central Bank President Jean-Claude Trichet, fronting a policy decision for the final time, said “downside risks” to the economy have intensified and the ECB will resume covered-bond purchases and reintroduce year-long loans for banks. The BOE expanded its bond-purchase plan for the first time in almost two years as budget cuts and Europe’s debt crisis jeopardize Britain’s economic recovery.

To contact the reporter on this story: Michael P. Regan in New York at mregan12@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net