The US markets marginally slipped on Monday, following the biggest two-day rally of the year, as investors moved cautiously ahead of ECB meeting, speculating that policy makers will take action to ease the region’s debt crisis, while Fed policy makers will meet this week before a jobs report to decide whether additional stimulus is needed to combat a slowdown in the world’s biggest economy. Federal Reserve Chairman Ben S. Bernanke may be taking another look at cutting the interest rate the Fed pays on bank reserves to bring down short-term borrowing costs and spur the slowing US expansion. Besides, the European Central Bank President Mario Draghi met with US Treasury Secretary Timothy Geithner after leaders in Berlin, Paris and Rome backed him by saying they will do what’s needed to protect the 17-nation euro.
In Europe, the statistical agency in Spain confirmed the second quarter contraction in economic activities by 0.4% from the first quarter when the economy contracted 0.3% following a similar decline in the fourth quarter of 2011. The activities shrank 1% from a quarter year ago, as Spain extended economic weakness for the third quarter in a row and unemployment hovers near 24%. Separately, European Commission survey showed a decline in confidence among businesses and consumers in the euro zone in July from June as investors worry about the growing uncertainties in the region. Also, mortgage lending in UK fell in June to the lowest level since December 2010.
The Dow Jones industrial average lost 2.65 points, or 0.02 percent, to 13,073.00. The S&P 500 Index lost 0.67 points, or 0.05 percent, to 1,385.30, while the Nasdaq Composite was down by 12.25 points, or 0.41 percent, to 2,945.84.
The Indian ADRs closed mixed on Monday, ICICI Bank was up 0.39%, Tata Motors was up 0.29% and Dr. Reddy’s Lab was up 0.23%. On the flip side, HDFC Bank was down 0.21% and Tata Communications was down 0.12%.
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