The US markets slipped on Monday, triggered by plunge in crude oil prices and surging dollar amid European concern, which left the Dow and the S&P with their worst losses since October. The 10-year Treasurys meanwhile rose, implying that investors were seeking safety in US government bonds. San Francisco Fed John Williams stated that discussions within the Federal Reserve about raising interest rates are still on track to happen about mid-2015. He added that the US economy has shown some pretty encouraging signs over the past several quarters. Williams, who is a voting member this year on the Fed’s policy-setting committee, is typically seen as a centrist whose views are in line with those of Fed Chair Janet Yellen. Separately, Boston Fed President Eric Rosengren stated that low inflation provides ample justification for patience on raising rates. The last time the Fed raised rates unemployment was actually lower and inflation quite a bit higher than it is today.
On the economy front, auto makers reported their strongest annual US sales since 2006, taking advantage of low fuel prices and interest rates to rebound from a global financial crisis that hammered results and forced some companies to undergo government-brokered restructurings. Sales of light cars and trucks in the US rose 5.9% from a year earlier to more than 16.5 million in 2014. December sales were roughly 1.5 million, up nearly 11% from a year earlier.
The Dow Jones Industrial Average lost 331.34 points or 1.86 percent to 17,501.65, Nasdaq was down by 74.24 points or 1.57 percent to 4,652.57 while, S&P 500 dropped 37.62 points or 1.83 percent to 2,020.58.
Indian ADRs closed in red on Monday; Dr. Reddy’s Lab was down by 1.21%, Tata Motors was down by 0.77%, HDFC Bank was down 0.53%, Infosys was down 0.40% and ICICI Bank was down by 0.23%.
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