Govt wins retail FDI vote: Will D-Street party today?

Moneycontrol Bureau

US In the US, the Dow and S&P came off their highs in the final minutes of trading but still it finished higher , led by a couple of upbeat economic reports and optimistic comments from china's new leader. However, Apple's sharp drop pushed the Nasdaq into negative territory. The stock tumbled more than 6 percent, logging its worst one-day decline in four years. The CBOE volatility index ended below 17. Meanwhile, Citigroup announced it will cut 11,000 jobs as part of restructuring actions in an aim to further lower expenses and improve efficiency. The bank also projected annual expense savings will exceed 1.1 billion dollars starting in 2014. The stock surged over 6 percent. On the economic data front, ADP's report showed that the private sector created 118,000 jobs in November following an addition of 157,000 jobs in October. Service sector expanded more than expected in November, with the ISM non-manufacturing index gaining to 54.7. Economists had been expecting a reading of 53.5. Factory orders were up 0.8% in October.  Key data to watch out for in US today Weekly jobless claims are expected to come in slightly lower at 380,000. Also watch out for challenger job-cut report. Europe European markets closed with marginal gains. The gains were limited after a weak euro zone business sector report. Ratings agency Standard & Poor's overnight cut Greece’s sovereign long-term foreign currency credit rating to "selective default" from an already low "ccc" rating. The decision to lower the sovereign rating follows the government's invitation to private sector bondholders to participate in the debt buyback "which under S&P's criteria they view as a selective default. There is an ECB meeting in Europe today. No move is expected on rates, but the ECB is also going to update on its economic projections. Asia Asian markets are trading positive today. Currency The euro slipped from a seven-week high against the dollar following disappointing Spanish bond auction and weak euro zone economic data. Commodities Crude prices declined with Brent down 1 percent to USD 108 levels on the back of weak economic data and a huge increase in gasoline stockpiles in US. From the precious metals space, gold slipped again to sub USD1,700 an ounce. Govt wins retail FDI vote The government won the vote on retail FDI in the Lok Sabha. The Samajwadi Party and the Bahujan Samaj Party walked out of the house bailing out the UPA in the crucial vote. With 471 members participating only 218 voted in favour of the motion moved by Sushma Swaraj opposing FDI in multi-brand retail. The government got 253 votes in its favour. The house also rejected the motion against amendments to the Foreign Exchange Management Act, it was also rejected with 254 members voting against the motion. But it was Mulayam and Mayawati who saved the day for the government by choosing not to participate in the voting. The BJP and the left parties cried foul after the vote. The BJP said the government is arrogant of power.