Euro posts record quarterly drop; Wall St. ends day lower
By Sinead Carew
NEW YORK (Reuters) - The euro closed out the worst quarter in its 15-year history on Tuesday, slammed by monetary policy changes and worries about Greece, while U.S. stocks retreated a day after posting big gains.
But the S&P 500 and the Nasdaq registered their ninth straight quarterly gains.
The euro skidded 11 percent against the dollar in the first quarter reflecting investors' expectations of divergent monetary policies. Investors are betting that the U.S. Federal Reserve will raise interest rates this year, while the European Central Bank's one-trillion-euro economic stimulus program is weakening the euro.
The euro EUR= on Tuesday was down 0.8 percent against the dollar. The greenback .DXY marked its biggest quarterly rise against the world's top six currencies .DXY since 2008.
On Wall Street, energy shares were among the biggest drags, falling in tandem with a decline in crude oil prices, offsetting a lift from two days of corporate takeover announcements, including several biotech deals on Monday and Charter Communications' (CHTR.O: Quote) plan to buy Bright House Networks for roughly $10 billion.
The Dow Jones industrial average .DJI fell 200.19 points, or 1.11 percent, to 17,776.12, the S&P 500 .SPX lost 18.35 points, or 0.88 percent, to 2,067.89, and the Nasdaq Composite .IXIC dropped 46.56 points, or 0.94 percent, to 4,900.88.
"Today's price action is reflection of all the bad in the quarter - the stronger dollar, weaker oil - and in some respects just a snapback from yesterday's outsized gains," said John Canally, chief economic strategist for LPL Financial in Boston.
"Tomorrow's a new quarter and there's a new batch of people ready to take some risks, so I wouldn't be surprised if we see an up day," he said. Continued...