October 18, 2013 / 08:44 IST
The US markets saw a good recovery with the S&P 500 logging a fresh 13-year high. The Dow pulled off a stunning comeback, erasing a triple digit loss to finish near the flat line. Even the small cap Russell 2000 index hit a new all-time record. The CBOE volatility index slumped to 14. The initial jobless claims in the country fell by 15,000 to 358,000 last week, according to the labor department.
In Europe, it was a day of consolidation. Markets closed narrowly higher, with investors cheering after US lawmakers finally reached a deal to lift the country's borrowing limit, averting a debt default in the short term.Asian markets widened their gains on the back of positive economic data from China. The country's Q3 GDP was up 7.8 percent YoY and up 2.2 percent QoQ. Hong Kong's Hang Seng rose 0.77 percent, while Japan's Nikkei was flat at 14,595. Singapore's Strait Times added 0.31 percent.Meanwhile, back home, the Sensex shed more than 100 points to close at 20415.51. The Nifty lost 43 points to close at 6045.85. On the earnings front, L&T will announce its earnings on Friday. The margins are expected to be under pressure due to pricing pressures. The stock lost nearly four percent ahead of the result day. HCL Technologies though reported a increase in its net profit, analysts say that its lop-sided growth has been a cause of worry. Axis Bank posted a 21 percent surge in its net profits. Oil marketing companies (OMCs) have decided to hold back a petrol price cut of one rupee ahead of elections. They feel that a cushion is needed as a revision will not be possible around elections.In the currency space, the dollar slid against a basket of currencies as investor focus returned to the US economy and the Fed's next move. The dollar index hovered around the 79.5 mark while the Yen rose to a 1-week high and is sitting near the 98 mark. The euro rose close to 1 percent versus the dollarIn commodities, crude tumbled as stockpiles in the Oklahoma oil hub began to reverse a months-long decline. Talks over Iran's nuclear programme also kept prices under pressure. Brent crude was down about 1.6 dollars per barrel near 109 point. Nymex was sharply lower, down 1.62 at a little over 100 dollars per barrel.Gold climbed more than 3 percent to USD 1321 per ounce, aided by dollar weakness and hopes that the US debt deal may prompt the Federal Reserve to hold back from reducing its additional monetary stimulus. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
