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Market Update

Bernanke Comments Reassure Financial Markets


Author: Nichole Harper
ticker.com
Last Update: 1:36 PM ET July 17 2013

1:30 PM New York – Stocks on Wall Street gained after Fed Chairman Bernanke reassured financial market about the longevity of the monetary stimulus and flexible approach of the central bank. Abbott Labs, Bank of America, CSX and Mattel were in focus after earnings release.

Stocks on Wall Street traded sideways after comments from Fed Chairman Ben Bernanke offered a reassurance that stimulus taper is not a pre-set program.

Market indexes opened higher but struggled to advance and industrials and technology companies were in focus with more than fifty companies are scheduled to release earnings today.

Bernanke said in his prepared remarks that the U.S. economy continues to expand at a moderate pace but employment situation is “far from satisfactory.”

In the semi-annual testimony, Bernanke said, “With the unemployment still high and declining only gradually, and with inflation running below the Committee’s longer-run objective, a highly accommodative monetary policy will remain appropriate for the foreseeable future.”

Fed Chairman was less clear about the timing of the stimulus taper. In his prepared remarks he said that the future economic conditions and data will determine the nature of stimulus taper and added “because our asset purchase” depend on “economic and financial developments” and “they are by no means on a preset course.

European Markets

European markets shrugged off morning losses and traded higher and investors looked ahead to comments from Fed Chairman Bernanke in the absence of any domestic economic news.

In London trading, FTSE 100 index increased 0.1% to 6,560 and the DAX index gained 0.3% to 8,226. In Paris, the CAC 40 index added 0.4% to 3,866.

All nine members of the rate setting committee at the Bank of England voted to keep the bond buying program intact at the first meeting held under the newly appointed Governor Mark Carney.

Asian Markets

Asian markets traded higher and the Nikkei index in Tokyo gained for the third day in a row despite the yen strengthening as investors looked ahead to election for the upper house of the parliament this Sunday.

Market indexes in Hong Kong, Mumbai and Seoul added between 0.2% and 1.1%.


U.S. Stocks in Review

European markets shrugged off morning losses and traded higher and investors looked ahead to comments from Fed Chairman Bernanke in the absence of any domestic economic news.

In London trading, FTSE 100 index increased 0.1% to 6,560 and the DAX index gained 0.3% to 8,226. In Paris, the CAC 40 index added 0.4% to 3,866.

All nine members of the rate setting committee at the Bank of England voted to keep the bond buying program intact at the first meeting held under the newly appointed Governor Mark Carney.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc