Dhaka, Bangladesh (BBN)– US stocks initially rose as investors took the Federal Reserve’s discount rate increase as evidence that the financial system is healing.
But the stocks started declining as investors remained cautious before congressional testimony by Fed Chairman and the sharp drop in consumer confidence heightened worries about the economic recovery, and suffered their biggest one-day decline in nearly 3 weeks on Tuesday.
However US stocks rose on Thursday after Federal Reserve Chairman Ben Bernanke reaffirmed his commitments to keep US interest rates exceptionally low for an extended period. The Dow Jones Industrial Average added 64.92 points or 0.63 percent over the week to end at 10,374.16.
The Nasdaq Composite Index advanced 9.61 points or 0.43 percent during the same time to finish at 2,235.90.
Japan’s Nikkei average rose 2.7 percent to its highest close in three weeks on Monday, as investors took the Federal Reserve’s discount rate hike as a sign that the financial system is healing.
The benchmark Nikkei 225 gained 276.89 points to 10,400.47, its highest finish since February 3. However, the Nikkei average fell on Thursday as the JPY rose broadly, outweighing comments by U.S. Federal Reserve Chairman that interest rates would be kept at very low levels for a long time. The Nikkei 225 fell 233 points over the week to end at 10,101.96.
Locally, the Dhaka Stock Exchange (DSE) went through some fluctuations this week. The Dhaka Stock Exchange General Index (DGEN) dipped to near 5,600 on Tuesday but reversed some of its losses later in the week and closed the week at 5,683.93 on Thursday.
BBN/SS/SI/AD-28Feb.10-10:22 am (BST)