Dow Jones Industrial will fight for the slightest chance for growth in early trading

European issue press on Dow Jones Industrial Average

In brief: Dow Jones Industrial Average is under serious pressure from the negative news from Europe. Bears begin trading on the U.S. stock market with a victory today.

Dow Jones Industrial will fight for the slightest chance for growth in early trading. Dow Jones Industrial Average trading week starts with an uncertain future. On the one hand rising dollar and falling euro, on the other deplorable situation on the European stock markets gives confidence bears. Analysts believe that the Dow Jones Industrial Average will start the day with a fall, but after the wait statistics from the U.S.. Meanwhile, the stock trades in Europe on June 2st 2010 opened with decrease in leading indexes against the background of news from China, which were presented the latest statistics of China Federation of Logistics and Procurement for the purchasing managers index (PMI).

That figure fell from 55.7 points in April to 53.9 points in May. Meanwhile, analysts on average expected the value of this indicator at the level of 54.4 points. Negative impact on sentiment of the stock market and influenced recent statements by European Central Bank head Jean-Claude Trichet that euro zone can cover the next wave of crisis. In this case Jean-K.Trishe added that the region is currently experiencing difficult times, in connection with which the leaders of states must make some serious conclusions. “A more thorough oversight of fiscal policy, monitoring the competitiveness of the economies of the eurozone, as well as structural reforms – in these areas need to make serious changes. We are a Monetary Union. Now we need the equivalent of a fiscal union with regard to monitoring and control of public finances” – led ECB press words of the head office of the organization. Against this backdrop, minus the quotations left the banking sector: Shares of French BNP Paribas and Societe Generale have fallen in price on 2,3% and 3,5% respectively, and the German Deutsche Bank and Commerzbank – to 1,7% and 2,4% respectively. Failed auctions are held and the shares of British lenders, including Barclays (-1,6%), Lloyds Banking Group (-2,3%) and Royal Bank of Scotland (-2,4%). At 12,8% of the energy giant collapsed quotes – British BP, after an attempt aimed at cementing the well failed. Recall that the company is trying to cope with oil spills in the Gulf of Mexico, but so far all efforts have failed. At the opening of the trading session cheaper securities and other oil companies – British BG Group (-0,3%), the British-Dutch Royal Dutch Shell (-2,6%) and French Total SA (-2%). An impact on the trading session has information that the U.S. insurance company American International Group (AIG) has refused to renegotiate the deal to sell its Asian life insurance business – American International Assurance (AIA) of British insurer Prudential Plc. This statement was a reaction to a proposal previously received Prudential reduce the cost of the transaction to 30.38 billion dollars, whereas the previously known amount of 35.5 billion dollars at the opening of stock trading in Europe, Prudential shares rose in price by 3,3%. As of 12:05 Moscow time, the British FTSE 100 index dropped by 102.83 points (-1.98%) – up to 5085.6 points, the German DAX – to 106.37 points (-1.78%) – up to 5857 , 96 points, the French CAC 40 – at 54.83 points (-1.56%) – up to 3,452.73 points, the Swiss index SMI – at 38.13 points (-0.6%) – up to 6,274.47 points.

Ukrainian Globalist
2010-06-01 22:08, Economics.

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