Dow Jones Industrial Average gives hope for recovery

Dow Jones Industrial Average - whether to trust in the index?

In brief: Dow Jones Industrial Average, as well as other major indexes preparing to jump. Analysts say the rapid growth of the U.S. stock market will start next week.

Dow Jones Industrial Average is poised for further growth in the long period of time. Investors regain confidence index, and stock market experts talk about the rapid growth of the Dow Jones Industrial Average next week. According to European traders, Dow Jones could rise by 3% by the end of the week and go straight to the growth of next week. The range of growth index was 9.5%. Meanwhile, U.S. stock indexes closed on Wednesday the growth. Positive news received yesterday from the euro zone, several smoothed predominant in recent negative background of trades and allowed world markets to win back part of the incurred losses since early May.

Purchases of European stock and commodity assets followed a statement by the Prime Minister of Spain Jose Luis Rodriguez Zapatero, announced by measures to reduce the budget deficit of the country. Note that the positive effect of this news was called, rather, the fact of drawing the attention of the Spanish government on the country’s debt problems and suggested actions to resolve them, rather than the content of the sounding plan. Proposed measures to reduce the budget deficit of Spain include reducing public expenditure by cutting wages and reducing their state, that is, in fact, similar measures taken in Greece, which have not yet proved its efficacy. In our opinion, yesterday’s growth can only be seen as a successful attempt to buy that investors overweight assets – statement by the Prime Minister of Spain served as a good reason for that. Support was provided by and published on Wednesday statistics according to which the euro-zone GDP grew in the 1 st quarter 2010 on 0,2%, having justified forecasts of experts. Against this background, the main European indices managed to add 1-2%. U.S. investors, with the support of European counterparts, also resumed buying of risky assets. As a result of the day the main indicators of U.S. stock market added to 1,3-2,1%. This morning futures “in America” continues to grow. Exchanges of the Asia-Pacific region are also showing positive momentum.

Ukrainian Globalist
2010-05-13 10:58, Economics.

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