Choppy trade sees Nikkei bounce back

<p>The Nikkei has rebounded after a choppy session.</p>

The Nikkei has gone through a choppy session in trading today (August 21st) but successfully bounced back from the seven-week low it hit yesterday.

Despite the difficult trading session, the index ended the day 0.2 per cent higher than when it opened, indicating a recovery for the Nikkei could be on the way.

But as the index dropped to as low as 13,250.36 during the course of trading before bouncing back to close at 13,424.33, further falls could be just around the corner.

According to a report by Reuters, investors involved in the Nikkei are concerned the US Federal Reserve could be set to bring its monetary stimulus to an end.

Should this be the case, it is expected there would be an impact on markets around the world.

Yesterday was one of the worst days for the Nikkei so far this year, with the index experiencing a 2.6 per cent dip in its value during the course of the session.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.