The US markets ended flat on Monday, to close virtually unchanged as investors waited for events later in the week, including the minutes from the Federal Reserve’s last meeting, slated for release. The central bank will release minutes from its July meeting. While the Fed didn't announce any further stimulus measures at the meeting, investors will look for clues about whether quantitative easing could be coming when chairman Ben Bernanke speaks at a Jackson Hole, Wyo, symposium at the end of the month. However, the economic reports since the August 1 Federal Open Market Committee gathering has dented chances of a third round of quantitative easing by the Fed. Meanwhile, most of the damage inflicted on the US labor market by the recession is reversible, according to Federal Reserve research leaving open the possibility that additional stimulus will be effective in reducing joblessness. About one-third, or 1.5 percentage points, of the jump in unemployment from 5 percent as the economic slump began to its 10 percent peak in October 2009 can be traced to a mismatch between the supply of labor and job openings, according to a study released this month by the Federal Reserve Bank of New York. That leaves the remainder due mainly to a lack of demand. Moreover, Apple Inc.'s shares rose a record high, as the technology powerhouse became the most valuable company by market capitalization of all time.
In Europe, President of Greece is scheduled to visit Berlin this Friday and the leader of the euro zone is expected to visit Greece, which is likely to demand additional time and relaxing of austerity measures as the nation battles depression like economic conditions and struggles with record high unemployment and falling government receipts. Meanwhile, the European Central Bank is contemplating setting limits on yields of bonds of each euro member state at the governing council meeting in September. In economic news, home prices in the United Kingdom declined but household finance index rose in August. Construction output in the euro zone dropped 0.5% in June.
The Dow Jones industrial average lost 3.56 points, or 0.03 percent, to 13,271.60. The S&P 500 Index lost 0.03 points, to 1,418.13, while the Nasdaq Composite was down by 0.38 points, or 0.01 percent, to 3,076.21.
The Indian ADRs closed mixed on Monday, Dr. Reddy’s Lab was down 0.22%, ICICI Bank was down 0.10% and HDFC Bank was down 0.09%. On the other hand, Tata Motors was up 0.10% and Infosys was up 0.09%.
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