The US markets ended lower on Monday, for the first session in five as investors paused after a recent winning streak which lifted the indices to multiyear highs. A four-session climb that included the Federal Reserve's announcement that it would start an open-ended bond purchase program to support the US economy had resulted Dow closing at its highest level since December, 2007. There was some weak economic reports, manufacturing activity in the New York region weakened again in September, raising fresh concern over a loss of momentum in the US factories sector. The Empire State index decreased to negative 10.4 in September from negative 5.9 in August, according to the manufacturing survey compiled by the Federal Reserve Bank of New York. Also, an industry group's nationwide survey of manufacturing earlier in the month had the sector contracting for a third month in August. Also, the US unemployment rate would be around 7% instead of 8% to 9% without the current level of doubt among consumers about economic issues including fiscal policy, a Federal Reserve study showed. The unemployment rate has exceeded 8% for 43 months. Also, shares of Apple Inc. rose, building on their all-time high following an update on preorders for the latest iPhone.
In Europe, the euro zone finance ministers meeting in Cyprus ended with no clear conclusion on Spain and Greek situations. The European Commission President Jose Manuel Barroso's plan to establish a single supervisory mechanism for banks in the euro zone from the beginning of 2013 was vetoed. Separately, Spanish Prime Minister Mariano Rajoy will meet Italian Prime Minister Mario Monti in Rome on September 21 and German Chancellor Merkel is to hold talks with French President Francois Hollande in Ludwigsburg on September 22.
The Dow Jones industrial average lost 40.27 points or 0.30 percent to close at 13,553.10. The Standard & Poor's 500 lost 4.58 points or 0.31 percent to 1,461.19 and the Nasdaq composite inched down by 5.28 points or 0.17 percent to 3,178.67.
The Indian ADRs closed mostly in red, Dr. Reddy's Lab was down 0.90%, Tata Motors was down 0.41% and HDFC Bank was down by 0.12%. On the other hand, ICICI Bank was up by 0.91% and Infosys was up by 0.04%.