The US markets closed lower on Tuesday, with no signs of progress towards a budget deal, two days before the nation is expected to hit its debt limit. House Republican leaders stated that they were still working to find a way to end the partial government shutdown and raise the debt limit. House Speaker John Boehner added lawmakers were trying to find a bipartisan way forward. Boehner told that Republican leaders were working with their members on a way forward but by the end of the day, it became clear that deal-making was shifting back to the Senate. Separately, New York Federal Reserve President William Dudley stated that the Federal Reserve’s large balance sheet won’t cause the central bank to deviate from the course of its monetary policy. Dudley argued that the large balance sheet creates incentives for the Fed to keep inflation in check. Inflation would cause long-term interest rates to rise, which would put even greater pressure on the central bank’s balance sheet. Richard Fisher, the president of the Dallas Fed stated it is doubtful that Federal Reserve will reduce the pace of its asset-purchase program at its meeting later this month.
Meanwhile, Fitch Ratings put its ‘AAA’ credit rating of the US on negative watch, citing the prolonged congressional negotiations over a hike to the borrowing limit. The prolonged negotiations over raising the debt ceiling risks undermining confidence in the role of the US dollar as the pre-eminent global reserve currency, by casting doubt over the full faith and credit of the US. On the economy front, manufacturing in the New York region improved at a slowest pace in five months in October, the Federal Reserve Bank of New York stated. The regional bank’s Empire State general business conditions index edged down to 1.5 in October from 6.3 in September. The decline was larger than expected.
The Dow Jones Industrial Average lost 133.25 points or 0.87 percent to 15,168.00, the S&P 500 was down 12.08 points or 0.71 percent to 1,698.06, while Nasdaq dropped 21.26 points or 0.56 percent to 3,794.01.
Indian ADRs closed mostly in red on Tuesday; Tata Motors was down 1.41%, HDFC Bank was down 1.33%, ICICI Bank was down 0.85% and Dr. Reddy’s Lab was down 0.59%. On the other hand, Infosys was up 0.22%.
Source:-berkeleygains
Meanwhile, Fitch Ratings put its ‘AAA’ credit rating of the US on negative watch, citing the prolonged congressional negotiations over a hike to the borrowing limit. The prolonged negotiations over raising the debt ceiling risks undermining confidence in the role of the US dollar as the pre-eminent global reserve currency, by casting doubt over the full faith and credit of the US. On the economy front, manufacturing in the New York region improved at a slowest pace in five months in October, the Federal Reserve Bank of New York stated. The regional bank’s Empire State general business conditions index edged down to 1.5 in October from 6.3 in September. The decline was larger than expected.
The Dow Jones Industrial Average lost 133.25 points or 0.87 percent to 15,168.00, the S&P 500 was down 12.08 points or 0.71 percent to 1,698.06, while Nasdaq dropped 21.26 points or 0.56 percent to 3,794.01.
Indian ADRs closed mostly in red on Tuesday; Tata Motors was down 1.41%, HDFC Bank was down 1.33%, ICICI Bank was down 0.85% and Dr. Reddy’s Lab was down 0.59%. On the other hand, Infosys was up 0.22%.
Source:-berkeleygains