The US markets closed higher on Thursday, with all three major indexes back in the black for 2011, after Greece dropped voting on its financial rescue and the European Central Bank unexpectedly lowered interest rates. The session began on an upbeat note after the ECB surprised markets with a quarter-percentage point cut to its key lending rate to 1.25% amid deteriorating economic data from the euro region. In a press conference, new ECB President Mario Draghi suggested the euro area could relapse into a mild recession by the end of the year. The markets extended gains as Greek Finance Minister Evangelos Venizelos stated that the nation won’t hold a referendum to vote on its latest financial rescue. Papandreou reportedly indicated he would not call a vote on Greece’s membership, saying he would instead talk to opposition leaders about forming a transitional government.
In US, there were some good reports on economic front, the Institute for Supply Management’s gauge of services-sector activity slid to 52.9% in October from 53% in September, illustrating ongoing expansion. Data from the Labor Department showed that jobless claims fell by 9,000 to 397,000 last week, the fewest in a month. Also, US Labor Department stated that third quarter productivity increased at a 3.1% annual rate after declining in two quarters in a row.
The Dow Jones industrial average gained 208.43 points, or 1.76 percent, to 12,044.50. The Standard and Poor’s 500 closed higher by 23.25 points, or 1.88 percent, to 1,261.15, while the Nasdaq composite gained 57.99 points, or 2.20 percent, to 2,697.97.
The Indian ADRs closed mixed on Thursday, Infosys Technologies was up by 0.20%, Dr. Reddy’s Lab was up by 0.18% and Tata Motors was up by 0.17%. On the flip side, ICICI Bank was down by 0.21% and HDFC Bank was down by 0.05%.
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