Dow Jones Industrial Average began to shatter the hopes of bears

Dow Jones Industrial Average started the steady growth

In brief: Investors finally believe in the growth of Dow Jones Industrial Average. In the early trading Dow Jones index began to grow and scare away bears.

Dow Jones Industrial Average went into a plus. Start Trading became more favorable for the Dow Jones Industrial Average. Other U.S. indexes also rose. At the opening of stock trading in the U.S. on May 17 is expected to increase the leading index, as evidenced by the dynamics of futures on U.S. stock indicators. As expected, investors will react to events in the European economy, in particular the situation around Greece: investors are still concerned that the efforts to save it from default action may slow down the debt crisis in the region, and this in turn could destabilize the single European currency.

Investors will await the outcome of the meeting of European finance ministers. They will meet today in Brussels to work out measures aimed at restoring confidence in financial markets to the euro. Do not remain without attention and the results of trading on European and Asian stock markets. For example, in Europe auctions have opened mainly growth stock indicators in Asian markets, but it was recorded a significant reduction in composite indexes. In addition, investor sentiment will affect the fall in commodity prices. Thus, the price of oil for the first time in three months fell below $ 70 a barrel., London Metals Index, tracking the dynamics of six metals, including copper and zinc, 14 May fell to 3.6%, which was the most significant decline since May 4 with . PM For this reason, it is expected that the sales may occur in the “minus” for the world’s largest oil company ExxonMobil Corp., The third-largest U.S. oil company ConocoPhillips and U.S. aluminum giant Alcoa Inc. Investors are also interested in corporate news from the field of M & A (mergers and acquisitions), which can serve as a positive backdrop for the opening of tenders. Operator network of clinics Universal Health Services Inc. agreed to buy America’s leading network operator of psychiatric hospitals, the company Psychiatric Solutions (PSYS) for $ 2 billion in a transaction in a network of clinics PSYS conditions will allow for the treatment of diseases associated with brain function. Universal Health also pledged to take the company’s net loss of $ 1.1 billion U.S. Today, the British insurer Prudential has announced a share placement to finance the acquisition of the Asian assets of American Insurance American International Group Inc. (AIG) – the company AIA Group Limited. According to forecasts, this news may cause pessimism of investors.

Reports that the British investment company Man Group Plc. agreed to acquire GLG Partners Inc., representing the asset management services, for 1,600,000,000 dollars may contribute to the activity of U.S. investors. Equity hedge fund Man Group lost at the opening of European trading 1%, paper GLG Partners have fallen in price by 3,6%. Shareholders of GLG Partners will receive 4.5 dollars per share, or 55% more its market value at closing of trading on May 14. The combined company will manage the assets of 63 billion dollars. Today is expected to publish quarterly statements of the American car manufacturer General Motors Co. (GM) and retailer of products for home improvement Lowe’s Cos, which may influence the course of bidding. In addition, a half hour after the opening session of the stock the U.S. Treasury will publish the data on net inflow / otttoku capital in March 2010. That also affect the exchange activity. By the beginning of trading futures quotes on the Dow Jones index rose 11 points (0.1%), the index S & P – 2,6 points (0.23%), the index of Nasdaq – on 4.25 points (+0 , 22%).

Ukrainian Globalist
2010-05-17 14:26, Economics.

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