US stocks fall further on Bernanke testimony

March 4th, 2009 - 5:55 am ICT by IANS  

Barack ObamaNew York, March 4 (DPA) US stocks Tuesday continued falling to their lowest levels in more than a decade after government officials said more money would be required before the US financial sector could recover.
Federal Reserve Chairman Ben Bernanke warned in congressional testimony warned of “considerable uncertainty” over the pace of the US economic recovery and warned the financial industry had yet to be stabilized.

Treasury Secretary Timothy Geithner in his own testimony said the government would likely ask Congress for another bank bail-out beyond the $700 billion approved in October.

President Barack Obama sought to inject some confidence into the markets, promising that the economy will recover and suggesting it may be time for investors to start buying.

“What you’re now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it,” Obama said after a meeting with British Prime Minister Gordon Brown.

The blue-chip Dow Jones Industrial Average was down 37.27 points, or 0.55 percent, to 6,726.02. The broader Standard & Poor’s 500 Index fell 4.49 points, or 0.64 percent, to 696.33. The technology- heavy Nasdaq Composite Index dropped 1.84 points, or 0.14 percent, to 1,321.01.

A gauge of financial shares fell to its lowest level since 1992.

The US currency rose against the euro to 79.63 euro cents from 79.55 euro cents Monday. The dollar climbed against the Japanese currency to 98.16 yen from 97.3 yen Monday.

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