business news

The stock market today (Thursday) is trying to recover from a disappointing announcement yesterday by the Federal Reserve, which lowered its economic outlook and extended Operation Twist.

The markets had hoped for something more out of the two-day FOMC meeting and responded negatively to the stimulus.

Also impacting the markets today are a number of weak economic reports including disappointing manufacturing indicators from overseas.

Europe's PMI index, based on a survey of purchasing managers in both the services and manufacturing industries, held steady at 46 which is near a three-year low. A measure of specifically euro-region manufacturing fell to 44.8 from 45.1 - another three-year low - in May, London-based Markit Economics said today in an initial estimate.

Both of those gauges were dragged down by a decrease in Germany's manufacturing output.

China also reported a preliminary PMI index, which if correct at 48.1 would be its lowest level in seven months. PMI levels below 50 indicate contraction.

In the U.S. existing home sales fell 1.5% in May, weekly initial unemployment claims remained depressingly high at 387,000 and the Fed's Philadelphia economic index fell to negative 16.6 in June, its lowest level since August.

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