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US markets closed flat despite good jobless claims data

12 Oct 2012 Evaluate

The US markets closed mostly lower on Thursday, with the S&P 500 index just managing to halt a losing streak, as cheer about a decline in jobless claims dissipated and enthusiasm over upbeat economic data faded. The Labor Department reported fewer-than-expected Americans filing for unemployment benefits last week, with applications declining 30,000 to 339,000, the lowest since February 2008. However, a separate report had the US trade deficit expanding in August as slowing global growth cut demand for US goods, with American exports down to their lowest since February. US trade deficit widened to $44.2 billion in August from a revised $42.5 billion in July. Exports dropped 1% to $181.3 billion, while imports declined 0.1% to $225.5 billion. Separately, another report had the price of imports climbing more than expected last month.

In Europe, the EU may consider pushing back when lenders need to start phasing in tougher Basel bank-capital rules by as much as a year after warnings that pressing ahead with the original timetable may drive up costs. Also, German Finance Minister Wolfgang Schaeuble stated that the decision on extending the debt repayment schedule for Greece will be taken only after the troika assessment report but he reiterated that the euro area will not bear the burden of Greece’s debt. Separately, Germany’s consumer price index rose 2% annually in September, unchanged from the preliminary estimates, final data released by the Federal Statistics Office showed. Also, the French consumer price index declined 0.3% in September compared to a 0.7% rise in August. Annually, the consumer price index eased to 1.9%in September from 2.1% in August.

The Dow Jones Industrial Average lost 18.58 points, or 0.14 percent, to close at 13,326.40, the S&P 500 finished up by 0.28 points, or 0.02 percent at 1432.84, while the Nasdaq ended lower by 2.37 points, or 0.08 percent to settle at 3049.42.

Indian ADRs closed in green on Thursday, Infosys was up by 1.35%, Dr. Reddy’s Lab was up 0.44%, Tata Motors was dup by 0.42%, ICICI Bank was up by 0.39% and HDFC Bank was up 0.30.

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