After helping US stock markets to their biggest one-day gain in six months, the impact of the appointment of Ben Bernanke as the next chairman of the US Federal Reserve faded somewhat yesterday.

Instead, US equity markets returned to business as usual, focusing on third-quarter corporate earnings and the latest economic data.

An unexpected drop in the consumer confidence index, seen as a barometer of household spending, along with a disappointing revenue outlook from Texas Instruments, the world's largest maker of the chips used in mobile phones, served to knock investor sentiment.

As a result, the Dow Jones industrial average closed 6.97 points down at 10,378.03.

But the response to Bernanke's appointment remained positive although analysts acknowledged the challenges he faces in keeping the world's largest economy on track.

"If he can control inflation without killing consumer spending, that would be the golden scenario," said Joe Gill, equity strategist at Goodbody Stockbrokers.

Stuart Draper of Dolmen Stockbrokers described Mr Bernanke's appointment as "excellent for equity markets".

"He's the best of the possible list of candidates," Mr Draper said of the successor to Alan Greenspan.

As an expert on the Great Depression and a researcher of deflation, Mr Bernanke is not expected to aggressively tighten interest rates, Mr Draper noted.

Mr Bernanke's nomination, announced by US President George Bush in an Oval Office event on Monday, was praised in the US, although Democrats said they would do due diligence in grilling the Fed governor-turned-Bush adviser closely.

"Clearly, Mr Bernanke will have a tough job filling Mr Greenspan's shoes. But he is as close to the perfect choice as Mr Bush could have made," the New York Times, often critical of the Bush White House, said in an editorial.

If confirmed by the Senate, Bernanke would take over from the 79-year-old Greenspan when he steps down on January 31st after leading the powerful central bank for more than 18 years.