Dhaka, Bangladesh (BBN) – The week started with U.S Stocks edging higher, but investors remained cautious regarding the approval of a 130 billion EUR rescue package for Greece on Monday when the US market was closed for President’s Day holiday.
During midweek, U. S shares gained as China’s move to beef up banking activity supported optimism for global growth. China’s move to help growth in the world’s second-biggest economy formed part of a global trend towards easier monetary policy by major central banks, aimed at supporting a fragile economic recovery being led by the giant U.S. economy and underpinning demand for riskier assets this year.
For the rest of the week, Stocks ended little changed paring gains after the Dow topped 13,000 for the first time since May 2008. Greece securing a bailout to avoid a disorderly default provided some support to stocks, but investors said that the news had mostly been priced in to the market, a weekly market update said.
Moreover, the high gasoline prices raised questions about earnings despite upbeat news on Greece. The week ended with stocks falling lower led by the Banks as the S&P 500 stalled near a 10-month-high after signs of weak European business activity rekindled concerns about a recession overseas.
Investors feared that weak Euro Zone growth would hamper countries dealing with heavy debt loads and the banks exposed to those debts.
The DJI stood at 12,938.67 increasing by 157.72 points from last week and Nasdaq last stood at 2,933.17 going up by 17.34 points from last week.
The week started with Japan’s Nikkei Average climbing up by 1.6 percent to hit a fresh six-month high on signs that the U.S. economic recovery is gathering pace and with expectations growing that Greece would obtain a long-awaited bailout next week.
During mid week, Japan’s Nikkei share average advanced 1.4 percent to trade above 9,500 for the first time in more than six months, encouraged by China’s move to stimulate growth by cutting the amount of cash banks must hold in reserve.
For rest of the week, Japan’s Nikkei average was seen treading in range as investors took profits ahead of the key 9,500 level, while the initial euphoria over Greece’s second bailout cooled and turned to concern over Athen’s ability to stick to painful cuts.
The week ended with Japan’s Nikkei share average ticking up towards 9,600 in choppy trade, with a softer JPY underpinning market sentiment and boosting risk appetite, although caution remained over Europe after data showed weak business activity in the region.
BBN/SSR/SI-24Feb12-10:50 pm (BST)
