The US markets edged higher on Thursday, amid a mixed bag of news from central banks around the globe, despite fact that US jobless claims climbed to a four-month high. The Bank of Japan announced aggressive easing measures aimed at lifting the economy out of a prolonged deflation. The number of Americans who applied last week for new unemployment benefits jumped to a four-month high, the Labor Department stated, though much of the increase might reflect seasonal quirks related to the Easter holiday and spring break. Initial jobless claims rose by 28,000 to a seasonally adjusted 385,000 in the week ended March 30. That’s the highest level since late November.
Meanwhile, Fed Vice Chair Janet Yellen has reiterated her support for the Fed’s ultra-easy stance, capping a week full of talk from Fed officials. The Fed has been buying assets to push down long-term interest rates. To be effective, Yellen stated that this policy depends not just on how much it will buy in assets but also on the public understanding of how long the Fed intends to hold those securities. Yellen added that the Fed’s current policy stance remains appropriate with the unemployment rate so high and the inflation rate below the central bank’s 2% target.
Separately, Federal regulators privately debated which firms outside of banks are systemically risky. The Financial Stability Oversight Council, made up of bank and securities regulators, is charged with designating which nonbank institutions are considered systemically important to the financial system and subjecting them to gradually increasing capital levels, lower leverage limits and more liquidity.
The Dow Jones Industrial Average gained 55.76 points or 0.38 percent to 14,606.10, the S&P 500 added 6.29 points or 0.40 percent to 1,559.98 and the Nasdaq jumped 6.38 points or 0.20 percent to 3,224.98.
The Indian ADRs closed mostly in red on Thursday, Infosys was down 1.09%, ICICI Bank was down 1.04% and HDFC Bank was down 0.43%. On the other hand, Dr. Reddy’s Lab was up 0.74% and Tata Motors was up 0.10%.
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