US markets end lower as ECB left key rates unchanged

The US markets closed down for a fourth session, but well off their lows, after ECB Chief Mario Draghi disappointed markets by not undertaking immediate steps to stabilize the euro zone. While Draghi left the door open for additional policy measures in the coming weeks, investors were expecting concrete actions today after the central banker pledged to "do whatever it takes" to save the euro last week.

Dow Jones Industrial Average was down 0.71% or 92.18 points at 12878.88. Nasdaq Composite shed 0.36% or 10.44 points at 2909.77. Standard & Poor's 500 fell 0.75% or 10.32 points at 1365.

It's the second disappointment in 2 days. First the Fed failed to deliver and now the ECB has done little to boost sentiment. The European Central Bank (ECB) left key rates unchanged at 0.75%.
 
ECB chief said that the central bank may undertake outright open market operations within its mandate to help bring down bond yields and that it will design plans over the coming weeks for such measures.

This fell short of what the market was looking for after Draghi last week pledged "do whatever it takes" to save the euro.

Some weak economic data from the US, initial jobless claims for the week ending July 28 rose to 365,000 from 357,000 the prior week. The factory orders for June fell 0.5% versus expectations for an increase of 0.5%. Retail spending rose 4.6% last month.

All eyes on the crucial US jobs data today, consensus estimates indicate a rise in non-farm payrolls to 100,000. Meanwhile, unemployment rate may remain unchanged at 8.2%.

A volatile trade in the currency space yesterday, the euro fell to a one-week low of 1.21 to the dollar following no action by the ECB in the near-term.

In commodities, crude prices gain with Brent above USD 106 levels supported by an expected cut in oil output in the North Sea and falling US gasoline stocks.

From the precious metals space, gold prices slip to around USD 1590 levels as hopes for ECB action fade.