US markets jump on stimulus hopes

The US markets rallied on Tuesday on speculation that central bankers could make further moves to stimulate the global economy. Federal Reserve Bank of Chicago President Charles Evans stated that central bank would support more stimulus and would back moves to spur more rapid jobs growth. However, the median US households lost more than one third of its wealth in three years to 2010 according to the latest survey released by the Federal Reserve.

The European Central Bank backed European Commission proposals for a banking union based on three pillars: Strengthening euro-area supervision of lenders, establishing a deposit guarantee program and minimizing the risks for taxpayers through contributions from the financial industry. Fitch Ratings downgraded 18 Spanish banks stating that euro-area countries face lower ratings because policy makers are failing to demonstrate they can bring the debt crisis under control and predicted Spain will miss budget-deficit targets. Besides, Spanish borrowing costs jumped to the most in the history of the euro as European government bonds slumped on concern policy makers aren't doing enough to prevent the currency bloc's financial woes from deepening.

The Dow Jones industrial average gain by 162.57 points, or 1.31 percent to end at 12,573.80. The Standard & Poor's 500 Index gain 15.25 points, or 1.17 percent, to 1,324.18, while the Nasdaq Composite Index was up 33.34 points, or 1.19 percent, to close at 2,843.07.

The Indian ADRs closed in green on Tuesday; HDFC Bank was up 1.36%, ICICI Bank was up by 1.30%, Infosys was up by 1.21%, Tata Motors was up by 1.00% and Sterlite Industries was up by 0.40%.