The US markets erased losses in final hours to end marginally up on Monday, with the technology sector posting the biggest gains as investors considered corporate-earnings reports. Caterpillar rose after the Dow component and maker of mining and construction equipment reported quarterly earnings above estimates but came in light on revenue while lowering its outlook for the year. Also traders have adopted a wait and watch policy that whether the Federal Reserve changes the guidance it will give market about interest rates. After historic changes last month, Federal Reserve officials this week will discuss a possible expansion of the size of its third round of bond buying and better ways to guide markets about future policy actions. The Fed’s policy-setting Open Market Committee meets on Tuesday and Wednesday. One aspect the Fed could change is its language about how long the benchmark fed funds rate will be kept low. Besides, the report on US economic growth in the third quarter is scheduled for release on Friday morning, and is expected to climb to 1.8% from the previous 1.3%.
In Europe, Moody’s Investors Service, a week after deciding against cutting Spain’s credit-rating to below investment grade, lowered Catalonia and four other Spanish regions. Catalonia, which accounts for a fifth of Spain’s economy, was reduced two steps to Ba3 from Ba1. Moody’s decision to cut the regions was driven by the deterioration in their liquidity positions, as evidenced by their very limited cash reserves as of September 2012 and their significant reliance on short-term credit lines to fund operating needs.
The Dow Jones Industrial Average gained 2.38 points, or 0.02 percent, to close at 13,345.90, the S&P 500 finished up by 0.63 points, or 0.04 percent at 1,433.82, while the Nasdaq ended higher by 11.33 points, or 0.38 percent to settle at 3,016.96.
Indian ADRs closed in green on Monday, ICICI Bank was up 1.25%, HDFC Bank was up 0.83%, Dr. Reddy’s Lab was up by 0.59%, Infosys was up by 0.29% and Sterlite Industries was up by 0.09%.
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