Nikkei drops back in choppy trade

<p>The Nikkei fell by 1.5 per cent today.</p>

The Nikkei dropped back from eight-week highs today (July 19th) as it ended the week by recording a 1.5 per cent loss.

After three days in a row of solid gains for the index, it fell away from the eight-week highs reached yesterday to close the week at 14,589.91.

It had been an extremely choppy day of trading for the index, which rose to as high as 14,953.29 – higher than any point since May 24th – but also dropped down to 14,413.28.

According to a report by Reuters, the Nikkei was up 0.6 per cent for the week as a whole and this is the fifth week in a row that the index has moved higher.

The Nikkei had a brief wobble last month when chairman of the US Federal Reserve Ben Bernanke indicated that the body could bring its quantitative easing scheme to an end.

However, the index has responded strongly to Fed officials easing these fears and has been performing well in the last month.

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