Bloomberg News

U.S. Stock Futures Trim Losses on Report of ECB Plan

September 05, 2012

U.S. Stock Futures Trim Losses on Report of ECB Bond-Buying Plan

Traders work on the floor of the New York Stock Exchange in New York. Photographer: Scott Eells/Bloomberg

U.S. stock futures trimmed declines as European Central Bank President Mario Draghi’s bond-buying proposal was said to involve unlimited debt purchases to stem the region’s crisis.

The Standard & Poor’s 500 Index fell 0.1 percent to 1,405.30 at 8:09 a.m. New York time, after dropping as much as 0.6 percent earlier.

Draghi’s bond-buying proposal involves unlimited purchases of government debt that will be sterilized to assuage concerns about printing money, two central bank officials briefed on the plan said. Under the blueprint, which may be called “Monetary Outright Transactions,” the ECB would refrain from setting a public cap on yields, according to the people familiar with the plan, who spoke on condition of anonymity.

To contact the editor responsible for this story: Jeff Sutherland at jsutherlan13@bloomberg.net


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