US markets cautious after Bernanke speech

US markets were treading water this afternoon following a cautiously optimistic speech by US Federal Reserve chairman Ben Bernanke.

He said the economy has shown signs of improvement, but conceded it remains vulnerable to shocks, and he called on lawmakers to reduce the long-term US budget deficit, Bloomberg reports. The S&P 500 inched up 0.11% to reach 1,325, while the Dow Jones gained 0.6% to 12,724. Analysts had expected a stronger open following the release of some better than expected economic indicators this morning. Initial weekly unemployment claims fell by 12,000 last week, to 367,000, while fourth quarter labour productivity rose by 0.7% on the quarter compared to the consensus expectation of 0.8%. ...