The US markets made a mixed closing on Tuesday amid lot of volatility, with investors unwilling to make big bets ahead of an unofficial start to the earnings season and Slovakia’s vote on the euro zone’s bailout fund. The day was marked by caution as investors were watching developments in Slovakia, where lawmakers delayed a vote on the expanded European Financial Stability Facility. Slovakian parliament rejected the measure to expand the 440 billion euros rescue fund. Of the 124 members only 55 backed the measure, far less than required majority of 76. The rejection also led the fall of the current four member coalition government. The parliament, however, is still expected to approve the bailout fund later this week. Alcoa, the biggest US aluminum producer, became the first company of the Dow to report results for the third quarter. It announced a quarterly profit which was short of estimates.
Meanwhile, European Commission President Jose Barroso stated that he will present proposals on the recapitalization of banks as Europe’s leaders struggle to tackle the region’s debt crisis. Besides, Greece stated inspectors from troika completed their mission and approved the release of sixth tranche of aid. Spanish banks including Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA had their ratings cut by S&P, which cited dimming growth prospects and heightened market turbulence.
The Dow Jones industrial average lost 16.88 points, or 0.15 percent, to 11,416.30. The Standard and Poor’s 500 closed higher by 0.65 points, or 0.05 percent, to 1,195.54, while the Nasdaq composite gained 16.98 points, or 0.66 percent, to 2,583.03.
The Indian ADRs closed mixed on Tuesday, Infosys Technologies was down by 1.17%, ICICI Bank was down by 0.63%, HDFC Bank was down by 0.63% and Dr. Reddy’s lab was down by 0.32%. On the flip side, Satyam was up by 0.18%.
Source: www.indothai.co.in
Indo Thai Securities Ltd 