Oil issues are pressing Dow Jones Industrial Average

Dow Jones is under pressure from environmental problems

In brief: Another pressure comes on the Dow Jones Industrial Average of the problems with the oil spill in the Gulf of Mexico.

Dow Jones Industrial Average started trading with the next attempt to restore the position. Bulls increase the volume of trading on the U.S. stock market from the first minutes. Bears are sitting in anticipation of the new statistics. Meanwhile, Bank of Canada raised the base interest rate yesterday to 0.25 points to 0,5% per annum, considering the pace of economic growth and inflation in the country, the relevant expectations. ” Canadian regulator was the first of the Group of Seven central banks of countries have taken steps in this direction, which prompted a new wave of fear in financial markets.

It seems that fears of market participants are not unfounded. Despite the frightening investors debt problems of the Old World, some representatives of the European Central Bank believes that now is the time to start raising interest rates around the world. This called on the eve of their foreign counterparts regulators ECB council member Christian Nuaillé, according to which, the current soft monetary policy increases the investors’ appetite for risk and leads to the formation of bubbles. Moreover, K. Nuaillé believes that central banks should limit its intervention in the functioning of market mechanisms only to exceptional cases. Experts from the European Central Bank on Monday released its twice-yearly report on financial stability in the region, while noting the progress in rebuilding the financial sector, identified the likely negative consequences of the current debt crisis for the whole of the EU economy and banks in particular. The last in this year may be forced to write off assets worth about 195 billion euro. U.S. stock exchanges after the weekend moved against the background of these reports it down. Oil poured into the fire news on a regular failure of the oil in an attempt concreted hole in the Gulf of Mexico and the beginning of the criminal investigation of this case. Losses up to the last session in the order of 1,1-1,7%. Reduced European indices on Tuesday falls within 0.5%. On Wednesday morning, the exchange of the Asia-Pacific region also reside in the negative territory. Among other things, concern in the region are the political prospects in Japan, where Prime Minister announced his intention to resign, and the slowdown in manufacturing activity in China.

Anrey Torbinski
2010-06-02 13:35, Economics.

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