Bloomberg News

U.S. Stock Futures Erase Losses on Reports of ECB Crisis Plans

December 07, 2011

Dec. 7 (Bloomberg) -- U.S. stock-index futures erased losses as the European Central Bank was said to plan a range of measures to stimulate bank lending in an effort to fight the region’s credit crisis.

Futures on the Standard & Poor’s 500 Index expiring this month were little changed at 1,254.1 at 8:41 a.m. in New York after losing as much as 0.4 percent.

Options on the table at the ECB include loosening collateral criteria so that institutions have more access to cheap ECB cash and offering them longer-term loans to grease the flow of credit to the economy, said the officials, who spoke on condition of anonymity because the discussions are private. Two said an interest rate cut is likely, with only the size of the reduction to be determined for the monthly decision tomorrow.

--With assistance from Gabi Thesing and Simone Meier in Frankfurt

To contact the editor responsible for this story: Michael P. Regan at mregan12@bloomberg.net


Too Cool for Crisis Management
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus