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US markets closed lower on geopolitical tension

12 Apr 2017 Evaluate

The US markets closed lower on Tuesday, as investors remained cautious over assets perceived as risky, such as equities, on rising geopolitical tensions. Tuesday’s moves come as investors focus on the latest geopolitical developments, as the US has taken a hard line on Syria at a G-7 meeting and North Korea has warned that it is ready for war should US Navy ships advance to the Korean Peninsula.

On the economy front, small-business owner optimism declined in March as sales expectations and earnings came back to earth after a post-election surge. The National Federation of Independent Business said its monthly sentiment gauge fell 0.6 point to 104.7. The post-election surge was the biggest in the four decades NFIB has been conducting its survey. The gauge rose again in January but then receded in February. Job openings rose and hires dipped in February as the labor market continued to grind slowly higher. There were 5.74 million openings on the last day of the month, 2.1% higher than in January. But the number of hires, 5.31 million, was 2.1% lower than those in January. Meanwhile, the number of people leaving jobs voluntarily declined 3.2% to 3.08 million, reflecting less confidence in the labor market among workers. Job openings, the headline figure in the Labor Department’s Job Openings and Labor Turnover Survey, touched a record high last summer and have tread water since then. But quits haven’t regained their prerecession highs yet.

The Dow Jones Industrial Average lost 6.72 points or 0.03 percent to 20,651.30, the Nasdaq was down 14.16 points or 0.24 percent to 5,866.77, while S&P 500 dropped 3.38 points or 0.14 percent to 2,353.78.

The Indian ADRs closed mostly in red; Dr. Reddy’s Lab was down 0.27%, Wipro was down by 0.15% and Infosys was down 0.10%. On the other hand, Tata Motors was up 0.50% and HDFC Bank was up 0.03%.



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