U.S. stock market remains weak after G20

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By Hao Li | June 29, 2010 4:08 AM EST

The U.S. stock market remains weak after a rather subdued G20 summit. G20 leaders agreed on some issues, but allowed members flexibility and latitude in their implementation of deficit programs, among other proposals.

The S&P 500 Index is down 3.90 points, or 0.36 percent, to trade at 1,072. 86 at 10:01 a.m. EDT. The Dow Jones Industrial Average declined 29.10 points, or 0.29 percent, to trade at 10,114.71. The Nasdaq Composite lost 0.46 percent.

Asian markets closed mixed, with the Hang Seng gaining 0.17 percent and the Nikkei-225 index dropping 0.45 percent. European markets are mildly up as Germany's DAX gained 0.55 percent.

 

The main topic of debate at the G20 meeting was balancing economic stimulus versus reducing public debt. The U.S. pushed for focus on stimulating the still-fragile global economy while Europeans pushed for cutting budget deficits.

 

At the conclusion of the summit, G20 nations agreed on measures to reduce deficits and balance their budgets, continue existing stimulus measures, and endorsed the idea of a tax on banks. However, each nation is to go at their own pace and the targets were non-binding. The group also softened its deadline for banks to adhere to new rules aimed at reducing risk.

 

In pre-market hours, the Bureau of Economic Analysis reported that U.S. consumer spending grew by 0.2 percent in May, edging past expectations.

 

Investors will also eye key U.S. data this week, including the closely-watched Bureau of Labor Statistics June jobs report, which publishes the unemployment rate.

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