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US markets end sharply lower on late sell-off

14 Oct 2014 Evaluate

The US markets slipped on Monday, marking the fifth consecutive day of 1% moves for the S&P 500 and triple-digit move for the Dow Jones Industrial Average, as investors weighed prospects for slowing global growth. A European recession is the top concern or risk for the next 18 months, according to attendees surveyed by the Institute of International Finance at its annual gathering. The highest-ranking bank regulators in the US and UK met in a suburb of Washington DC to conduct a simulation of how they would handle the collapse of a major international bank. The US team included Federal Reserve Chairwoman Janet Yellen and Treasury Secretary Jacob Lew, their UK counterparts, Chancellor of the Exchequer George Osborne and Bank of England Governor Mark Carney also participated.

Besides, Charles Evans, the president of the Chicago Fed has stated over the weekend that a stronger US dollar is an obstacle to the Federal Reserve’s ability to meet its inflation mandate and will impede growth. Evans added that he expects the economy to growth at a 3% pace, but because housing isn’t acting as its typical engine of growth, a lot of things have to go right to get that growth rate. Earlier, in his speech, Evans has raised concern that there is more uncertainty in the global economic outlook than the Fed had expected.

Dow Jones Industrial Average lost 223.03 points or 1.35 percent to 16,321.07, Nasdaq was down by 62.58 points or 1.46 percent to 4,213.66, while S&P 500 ended lower by 31.39 points or 1.65 percent to 1,874.74.

The Indian ADRs closed mostly in green on Monday; Infosys was up by 1.03%, ICICI Bank was up 0.78%, HDFC Bank was up by 0.43% and Tata Motors was up 0.23%. On the other hand, Dr. Reddy’s Lab was down by 0.95%.

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