Nikkei drops back over Fed concerns

<p>The Nikkei has slipped back in today’s trading.</p>

The Nikkei has lost some of its value today (July 31st), cancelling out part of the gains recorded by the index yesterday.

It dropped 1.5 per cent to end the day at 13,668.32 and now looks likely to record a second successive weekly drop, which would follow on from four weeks in a row of strong gains.

According to a report by Reuters, the broader Topix index was down by 1.5 per cent during today's trading as well, ending the day at 1,131.70.

The losses sustained by the Nikkei today mean that it made a loss for July as a whole, shipping 0.1 per cent of its value over the course of the month.

Investors were cautious about the outcome of a US Federal Reserve policy meeting and that forced both the Nikkei and the Topix down today.

The Nikkei was up by 1.5 per cent yesterday, with the index bouncing back from the one-month low it hit on Monday, when it dropped by 3.3 per cent.

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