Nikkei continues its rally - ZEN Money

Nikkei continued its rally in the Thursday's morning session to a 5-1/2-year high on the back of continued weakness in the yen against the dollar after US Federal Reserve chief suggested that the central bank could scale back stimulus in coming months. The rise in indicies was further supported after the Bank of Japan maintained an aggressively loose policy that will inject up to $1.4 trillion into the financial system.

In US Markets major indicies fell after minutes from the latest Federal Reserve meeting showed some officials were open to tapering large-scale asset purchases as early as at the June meeting. The comments from Fed Reserve's Ben Bernanke on economy stimulus measures pressurised the indicies further. However, some corporate earning supported the indicies at lower levels.

On the European front, the British bench rose after the Federal Reserve chairman Ben Bernanke said that central bank needs to see further signs of traction before taking its foot off the gas. The banking sector received a lift after Lloyds Banking Group and Royal Bank of Scotland agreed plans to shore up their capital with the financial regulator, removing a barrier to the government offloading its shares.

Source : Equity Bulls

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