The US markets dropped for a second session on Tuesday after the Federal Reserve refrained from taking more steps to stimulate the economy and concern grew that European leaders won’t agree on ways to expand the region’s bailout capacities. The markets started their decline after policy makers at the central bank stated that the US economy managed to maintain growth even as the global economy slowed. In Europe, German Chancellor Angela Merkel rejected the idea of boosting the ceiling of the European Stability Mechanism, or the permanent rescue fund for the euro area.
The Fed further stated it would continue its trade of $400 billion of short-term debt with long-term securities to extend the average maturity of its holdings, but did not unveil any new stimulus program. Besides, the government data showed the nation’s retail sales rose at the slowest pace in five months climbing just 0.2% in November. Also the Commerce Department reported that inventories at US businesses rose 0.8% in October, with business sales up 0.7%. Separately, the Labor Department estimated job openings fell to 3.27 million in October from 3.38 million the month before.
The Dow Jones industrial average lost 66.45 points, or 0.55 percent, to 11,954.90. The Standard and Poor’s 500 closed lower by 10.74 points, or 0.87 percent, to 1,225.73, while the Nasdaq composite lost 32.99 points, or 1.26 percent, to 2,579.27.
The Indian ADRs made a mixed closing on Tuesday, Tata Motors was down by 0.38%, Sterlite Industries was down by 0.14% and ICICI Bank was down by 0.10%. On the flip side, HDFC Bank was up by 0.35% and Infosys Technologies was up by 0.07%.
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