Indian ADRs end strictly lower led by banking ADRs
US stocks in the red once again with steep losses at Wall Street on Tuesday, 8 October 2013. U.S. stocks fell sharply on Tuesday hit by growing jitters over the budget impasse in Washington, with the partial government shutdown extending into a second week with few signs of a deal to end it or raise the nation's debt ceiling. It was day eight of the partial government shutdown and it was day two this week in which the major indices fell victim to broad-based selling interest. Once again, the budget/debt ceiling impasse in Washington was largely to blame.
The Dow Jones Industrial Average shed 159.71 points, or 1.1%, to close at 14,776.53. The Nasdaq Composite dropped 75.54 points, or 2%, to end the day at 3,694.83. The S&P 500 index fell 20.67 points, or 1.2%, to 1,655.45.
Nine out of ten sectors ended in the red. The worst performing sectors were telecom, materials, and consumer discretionary. Twenty seven out of thirty Dow components ended lower. Visa, JP Morgan and IBM led declines among the Dow components.
Wal-Mart, Procter & Gamble and Coca-Cola were the only Dow components to finish higher.
The partial U.S. government shutdown is in its eighth day with still no serious movement from either Democrats or Republicans. In fact, the Republican Congress and President Obama appeared to dig in their heels farther on Tuesday.
The World Bank and International Monetary Fund hold annual meetings in Washington, D.C., at the end of this week. Any proclamations or overtures made by the U.S. at the meeting would be at least somewhat discounted by the inability of U.S. lawmakers to agree on a spending plan.
Most U.S. economic data is not being released due to the U.S. government closure. However, the Fed's FOMC minutes will be released on Wednesday and will be closely scrutinized by the market place. Other Fed officials are speaking this week. Traders and investors will be very interested in seeing what these officials say about the U.S. government shutdown's impact on the U.S. economy.
Oil traders weighed the outlook for energy demand against a backdrop of hints on the economic outlook. The IMF on Tuesday cut its global economic forecast, noting that downside risks are building and urgent policy actions are needed to keep the global economy from getting mired in subpar growth.
Separately, the China's September HSBC services purchasing managers' index fell to 52.4 from 52.8 in August, though a reading above 50 in the gauge of service-sector activity indicates expansion.
Crude-oil prices ended higher on Tuesday, 08 October 2013 at Nymex. Crude-oil futures settled higher despite a slip in China's monthly services activity and the International Monetary Fund's reduction to the world economic growth outlook keeping a cap on any gains.
November crude oil rose 45 cents, or 0.5%, to settle at $103.49 a barrel on the New York Mercantile Exchange. Prices, which last week gained 0.9%, held their ground above $103 for a fifth-straight session.
Oil traders weighed the outlook for energy demand against a backdrop of hints on the economic outlook. The IMF on Tuesday cut its global economic forecast, noting that downside risks are building and urgent policy actions are needed to keep the global economy from getting mired in subpar growth.
Separately, the China's September HSBC services purchasing managers' index fell to 52.4 from 52.8 in August, though a reading above 50 in the gauge of service-sector activity indicates expansion.
Bullion metal prices ended steady on Tuesday, 08 October 2013 at Comex. Prices ended the U.S. day session near unchanged and in the middle of the day's narrow trading range on Tuesday. Gold and silver markets languished on a lack of fresh, bullish fundamental inputs. December gold ended lower by $0.50 (0.03%) at $1324.6 per ounce on Tuesday. December silver ended higher by 6 cents or 0.3% of $22.44 per ounce.
Declining stocks outnumbered advancers by more than four to one on the New York Stock Exchange and the Nasdaq. Composite volume topped 3.5 billion shares for NYSE-listed stocks and 2 billion shares for Nasdaq-listed stocks by the close.
Indian ADRs ended lower on Tuesday. In the IT space, Infosys was down 2.2% and Wipro was down 1.5%. In the Banking space, HDFC Bank was down 4.2% and ICICI Bank was down 4.1%. In other space, Tata Motors was down 1.7% and Dr Reddys was down 1.3%.
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