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Home > Investments > Equities

Markets: Wall Street falls again as ECB stance softens

Software glitch at Knight Capital hits company shares and causes market confusion.

By Michael Trudeau | Published Aug 03, 2012 | comments

Failure by the European Central Bank to reassure investors led to a fourth consecutive day of equity market decline, with three major US equity indices closing in the red.

Shares in market-making and trading company Knight Capital Group fell 62.8 per cent after the company reported a $440m (£238m) pre-tax loss resulting from a software malfunction which affected markets on Wednesday (2 August).

Mixed-to-positive news from US retailers boosted the consumer discretionary index up 0.2 per cent, with shares in clothing retailer Gap rising 12.75 per cent to $33.17 (£21.72) their highest point in the past year.

The S&P 500 closed at 1,365 after a 0.7 per cent drop of 10 points. The Dow Jones Industrial Average experienced a 0.7 per cent drop of 92 points, to close at 12,878, while the Nasdaq Composite fell 0.4 per cent, down 10 points to close at 2,909.

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