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US markets closed higher ahead of FOMC announcement

17 Jun 2015 Evaluate

The US markets closed higher on Tuesday, as investors shrugged off worries about unsuccessful Greek debt talks and awaited the outcome of a two-day Federal Reserve policy meeting which concludes on Wednesday. Fed Chairwoman Janet Yellen will hold a news conference after the meeting concludes. The stock market appeared to find support in stronger-than-expected data for building permits. The construction started on new US homes fell 11.1% to an annual rate of 1.04 million in May, pulling back from a surge in April, which saw the fastest starts pace since late 2007. Starts for single-family homes fell 5.4% to an annual rate of 680,000, while starts in buildings with at least five units dropped 18.5% to a pace of 349,000. The government tweaked April’s starts rate to 1.17 million. For context, there was an average starts pace of about 1.5 million over the 20 years leading up to the housing bubble’s 2006 peak. The annual pace of permits for new construction, a sign of future demand, rose 11.8% to 1.28 million, the fastest pace since August 2007. The pace of permits for single-family homes rose 2.6% to an annual rate of 683,000, while the pace of permits for apartments rose 26% to 557,000.

The Dow Jones Industrial Average added 113.31 points or 0.64 percent to 17,904.48, Nasdaq was up by 25.58 points or 0.51 percent to 5,055.55 while, S&P 500 gained 11.86 points or 0.57 percent to 2,096.29.

The Indian ADRs closed mostly in green on Tuesday; Infosys was up by 0.59%, HDFC Bank was up 0.29%, ICICI Bank was up by 0.22% and Tata Motors was up 0.18%. On the other hand, Dr. Reddy’s Lab was down 0.08%.


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