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US markets closed mostly lower on mixed economic reports

29 Aug 2012 Evaluate

The US markets closed mostly lower for the second day on Tuesday, with Nasdaq Composite finishing slightly higher as investors weighed mixed economic reports and took a cautious stance ahead of a key speech by the chairman of the Federal Reserve later this week. While, the investors welcomed better-than-expected report on the US housing market but fall in consumer confidence did brought some pessimism. The S&P/Case-Shiller index of property values in 20 cities rose 0.5% in June from the year-earlier period, the first such gain in nearly two years. US home prices bounced higher for a second month in June. The S&P/Case-Shiller 20-city composite index registered a 2.3% advance in June, matching upwardly revised gains in May and taking the year-on-year move to positive territory for the first time in close to two years with a gain of 0.5%. However, the Conference Board’s index of consumer confidence declined in August to a nine-month low, with the data illustrating pessimism about job prospects and the economy. Consumer confidence fell to a nine-month low in August as Americans grew more worried about the economy and the chances of finding a job, according to a survey released. The Conference Board stated that its confidence index dropped to 60.6 last month from 65.4, marking the lowest level since November.

Meanwhile, ECB President Mario Draghi canceled his Saturday speech in Jackson Hole, citing work ahead of the ECB’s meeting. That leaves Fed Chairman Ben Bernanke’s address on Friday as the headline event. Investors are expecting that the Fed chief is unlikely to signal a big monetary-policy move from Wyoming, with whatever action the central bank might take at its September meeting still dependent on upcoming economic data.

In Europe, political leaders shifted focus to Spain and leaders ramp up meetings this week to finalize the process of releasing capital to Spanish banks. Spanish Prime Minister Mariano Rajoy is scheduled to meet European Council President Herman Van Rompuy. The Spanish premier will also meet with French President Francois Hollande later this week. Besides, the National Statistics Institute in Madrid reported Spain’s recession grew worse in the second quarter, with the euro member’s gross domestic product falling 0.4% from the first quarter. Separately, German consumer confidence is expected to remain stable in September. French unemployment and euro zone money supply growth rose in July. Hungarian central bank cut key rate by 25 basis points.

The Dow Jones industrial average lost 21.68 points, or 0.17 percent, to 13,103.00. The S&P 500 Index lost 1.14 points or 0.08%, to 1,409.30, while the Nasdaq Composite was up by 3.95 points, or 0.13 percent, to 3,077.14.

The Indian ADRs closed mostly in red on Tuesday, ICICI Bank was down by 0.88%, Tata Motors was down 0.45% and HDFC Bank was down 0.31%. On the other hand, Dr. Reddy’s Lab was up 0.46% and Wipro was up 0.10%.

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