LONDON/NEW YORK, 25 December 2003 — The euro hit a new record high against the dollar yesterday following the publication of disappointing US economic data, as financial markets thinned out on the eve of the Christmas holiday.
The single European currency stood at an all-time high of $1.2455 in New York against $1.2396 late on Tuesday in New York, on news that US orders for durable goods had plunged 3.1 percent in November, a trader said. The broad based drop was the largest since September 2002. Orders had risen in four of the past five months.
Major currencies had been range-bound in earlier, abbreviated pre-Christmas trading in Europe, as the dollar proved resilient in the face of the first suspected case of mad cow disease in the United States. The pound was at $1.7657 (1.7630), 189.50 yen (189.33) and 2.2191 Swiss francs (2.2196).
Stocks in the United States eased just below their 2003 highs in light holiday trading yesterday, but the first potential case of mad cow disease found in the United States hurt No. 1 hamburger chain McDonald’s Corp. and other restaurant companies.
McDonald’s topped the New York Stock Exchange’s most active list and led the blue-chip Dow down with a tumble of almost 6 percent.
The Dow Jones industrials shed 26 points, or 0.26 percent, to 10,314, a day after reaching its highest close since May 17, 2002. The broad Standard & Poor’s 500 edged down 0.81 of a point, or 0.07 percent, to 1,095, a day after hitting its highest close since May 23, 2002. The tech-heavy NASDAQ Composite lost 1 point, or 0.08 percent, to 1,973.
Asian stock markets were quiet with investors sidelined and many major bourses closing after half a day of trading due to the Christmas holidays. Tokyo, Taipei, Shanghai and Bangkok are the region’s only major markets opening on Christmas Day.
The Tokyo Stock Exchange’s Nikkei-225 index lost 1.24 points or 0.01 percent to end the day at 10,371.27 while broader Topix index of all First Section shares slid 3.30 points or 0.33 percent to 1,011.96.
Hong Kong share prices closed 0.29 percent higher after gains on Wall Street and as newly listed Fujian Zijin Mining and China Life Insurance continued to prosper. The key Hang Seng Index gained 36.19 points to close at 12,456.70.
