The US markets closed higher on Monday, with the Standard & Poor’s 500 Index returning to an almost four-year high after a gauge of national manufacturing improved, stretching Wall Street’s best three-month start since 1998 into the second quarter. American manufacturing expanded at a somewhat faster pace in March and most industries experienced growth. A gauge that measures the strength of the manufacturing sector, produced by the Institute for Supply Management, rose to 53.4% last month from 52.4% in February. Reading over 50% indicates that more manufacturers are expanding than contracting. The data helped assuage concern about the global economy after earlier reports showed European unemployment rose to a 14-year high in February and manufacturing contracted for an eighth month in March. Separately, the Commerce Department stated that construction spending fell 1.1% in February versus expectations of a 0.7% gain. US construction spending decreased 1.1% at an annual rate of $808.9 billion in February from the revised January estimate of $818.1 billion and rose 5.8% from a year ago spending of $764.2 billion.
Besides, the China Federation of Logistics and Purchasing stated that the purchasing managers’ index improved to 53.1 in March from 51 in February, the highest since March last year. In Europe, Euro-zone Purchasing Managers’ Index fell to 47.7 in March, a three month low, from 49 in February; final data from Markit Economics showed matching the flash estimate and the seasonally adjusted jobless rate in the euro area rose to 10.8% in February from 10.7% in January, data from Eurostat showed. The rate was 10% in February 2011.
The Dow Jones Industrial Average closed higher by 52.45 points, or 0.40 percent, at 13,264.50. The S&P 500 gained 10.57 points, or 0.75 percent, at 1,419.04, while the Nasdaq was up by 28.13 points, or 0.91 percent, at 3,119.70.
Indian ADRs closed mixed on Monday, ICICI Bank was up 0.93%, Tata Motors was up 0.83%, HDFC Bank was up 0.57% and Dr. Reddy’s Lab was up 0.42%. On the flip side, Wipro was down 0.03%.
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