The US markets closed lower on Tuesday, as a slump in commodity prices reignited festering worries about slowing global growth. The focus on global growth and China in particular, has intensified after the Federal Reserve last week chose to stay pat on interest rates, citing concerns about an economic slowdown abroad. Investors turned away from risky assets such as stocks in other markets, after the Asian Development Bank lowered its forecast for China’s annual economic growth to 6.8% for this year as pressures on the economy increased, from a previous forecast of 7.2%. On the economy front, the Federal Housing Finance Agency (FHFA) reported that US home prices rose 0.6% month over month in July. Compared with July 2014, the house price index has gained 5.8%. The 0.2% index increase reported for June was unchanged. The FHFA monthly index is calculated using purchase prices of houses with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The index remains 1.1% below its March 2007 peak and is roughly equivalent to its level in November 2006. The consensus estimate for July called for an increase in a range of 0.4%.
The Dow Jones Industrial Average lost 179.72 points or 1.09 percent to 16,330.47, the Nasdaq was down by 72.24 points or 1.50 percent to 4,756.72 while the S&P 500 dropped 24.23 points or 1.23 percent to 1,942.74.
The Indian ADRs ended in red on Tuesday, Tata Motors was down 1.46%, Dr. Reddy’s Lab was down by 1.18%, HDFC Bank was down 1.06%, Wipro was down 0.34% and ICICI Bank was down by 0.26%.
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