US markets down on weak economic data

CNBC-TV18’s Indira Kannan - US markets headed downhill on Thursday with the Dow, the Nasdaq and the S&P 500 all lost around 1% each driven down by weak economic data. The US economy grew at an annual rate of 0.6% after the fourth quarter of 2007, while it expanded at 2.2% for the whole year down from 2.9% growth it showed in 2006.
 
Crude futures surged to close above USD 102/bbl, gold also shot up, while the dollar extended its losses against other major currencies. In economic news, Fed Reserve Chairman Ben Bernanke said the risk from economic slowdown was higher than that of inflation, while US President George W Bush maintained that the US economy was not headed towards a recession.
 
In the Indian ADRs, the tech sector was down with Infosys, Wipro, Satyam and Patni Computers all finished lower. Banking was in the red as well with ICICI Bank lost over 3%, while HDFC Bank lost over 2%. Telecom was mixed with Tata Communications gaining a percent and MTNL finished lower. Tata Motors lost about 1.5%, while Dr Reddy’s Labs and Sterlite Industries finished today higher.