Surprising reaction after Fed's tapering decision.

Surprising reaction after Fed’s tapering decision.

The long awaited US’s Fed tapering decision was confirmed last Thursday. The expectation of negative effect from the tapering move failed to realise last week as the market rebounded firmly upon the news. This was a rather surprising move for many market participants. The week started of weak and indecisive as the festive holiday starts to kick in. Anticipation of Fed’s tapering came on Tuesday which helped Straits Times Index to be lifted above 3065 level which was then being slapped with indecisiveness on Wednesday. However, after the announcement of the news, STI attempted to rally strongly on Thursday but there was lack of confidence in the market to maintain the bullishness. On Friday, due to strong rally from DJI, STI was then able to remain strongly above 3065 level. For the week, STI closed with 28.46pts up; ending at 3094 level. Can …