The US markets closed modestly higher on Wednesday, after a German court declined to block a euro-area rescue fund and as investors mulled the possibility of further stimulus from Federal Reserve Chairman Ben Bernanke and his colleagues who will once again roll out unconventional policies to bolster economic growth of less than 2 percent in the second quarter and bring down unemployment stuck above 8 percent for 43 straight months. Investors are expecting that the Fed could signal a third round of bond purchases when it will end its two-day policy-setting session on Thursday. Besides, it is also widely expected that the Fed will extend the length of its record-low interest-rate policy into 2015 as it strives to bolster the recovery and help reduce the nation’s unemployment rate. The Fed will release policy makers’ forecasts for unemployment, inflation and the expected path of the federal funds rate over the next several years.
In Economy news, US import prices rose less than estimated in August, according to a report released by the US Labor Department. Import prices rose 0.7% in August following a revised 0.7% fall in July. US export prices increased 0.9% in August after rising by a revised 0.4% in July.
In Europe, the German court ratified the European Stability Mechanism and stated that the bailout fund must limit the German liability to €190 billion and any increase must get parliamentary approval. In addition, the court also required the bailout fund to consult both the lower and upper houses of the parliament for all confidential decisions. With the setting up of the permanent bailout fund, the euro zone is one step closer in providing a second line of defense after the European Central Bank announced a policy to buy unlimited amount of euro bonds last week. Separately, in the UK a report showed that jobless claims unexpectedly fell the most in more than two years in August as the economy continued to create jobs in the face of a recession.
The Dow Jones industrial average gained 9.99 points or 0.07 percent to close at 13,333.30. The Standard & Poor's 500 gained 3.00 points or 0.21 percent to 1,436.56 and the Nasdaq composite inched up by 9.79 points or 0.32 percent to 3,114.31.
The Indian ADRs closed in green, Tata Motors was up by 1.06%, Dr. Reddy’s Lab was up 0.73%, ICICI Bank was up by 0.47%, Infosys was up by 0.26% and HDFC Bank was up by 0.20%.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: