The Movement is Still Up

Though not much movement was seen in the morning, most stocks jostled during the close and ended positive. NYSE closed at 7,474.02, gaining 47 points or 0.6% on previous close. DIJA closed 47.6 points up at 10,734. 0.5% surge in Nasdaq helped to gain 11. 1 points, closing at 2,389.

PLCM gained mainly due to its recent tie up with an Indian based corporation. FUQI, however, witnessed a fall as it failed to maintain or exceed its previous Q4 statistics. Experts believe BBI may file for Bankruptcy, hence a plunge was expected. Though HIG was low throughout the day, it observed re-bounce quite immediately after share sales were announced.

More than fundamentals, a major reason in sudden rise of the market was the Wednesday evening announcement of Japanese Federal Bank and the Federal Reserve that promised to maintain interest rates at lower figures, which they say, will drive the economic growth considerably. It’s too early to be optimistic. Reports, however, mentioned a positive sign and confirmed a fall in inflation rate.

Soft inflationary data coupled with other positive reports helped market gain toward the evening hours. According to Labor Data, the Producer Price Index fell by 0.6% in previous month, which is the biggest drop in past 7 months.

A major reason, however, that drove market upward was Japan’s decision to keep its interest rate low at 0.1% and provide funds through short-term loans. Reports continue to surprise as unemployment rate of February in the UK showed an unanticipated drop. It was the biggest fall seen since Nov 1997. Consequently, British pound gained against the euro and dollar.

After Fed’s announcement, stocks gained considerably. Dow hit the level higher than ever, since mid-January. S7P reached its highest level since Oct 2008 and closed at 1,166 gaining 0.58%. Since a month, markets in US are providing steady gains.

Though not much can be predicted about the level it will reach toward the month end, it is expected to gain on Thursday and Friday. Experts, however, are not much sanguine and they expect deflation in coming months.