Dow Jones Industrial Average: a new threat to collapse

Dow Jones Industrial can lose about 2%

In brief: Dow Jones Industrial Average remains under pressure from expectations of defaults in Europe and mixed economic statistics from the U.S..

Dow Jones Industrial Average loses a lot and gains a little. Dow Jones is growing very slowly, but drops very quickly. Bulls are in no hurry to increase trading volumes today. Bears also do not rush into battle, at breakneck speed. Dow Jones Industrial remains near zero growth. Stock trades in the U.S. on June 7 open elevated leading indexes. Positively players stock market embraced the latest economic statistics from Germany. Today the Ministry of Economy of Germany disclosed in terms of industrial orders in the country in April 2010.

Factor taking into account seasonal factors, rose by 2,8% compared to the previous month, although analysts expect declining by 0,4%. In the absence of statistics has on the U.S. economy this news from Germany come to the fore and largely determine the mood of investors in U.S. stock trades. The enthusiasm of investors is also associated with news from the Gulf of Mexico. Thus, according to recent data, specialists from BP managed to establish control over the emergency wells: set June 3 deterrent valve allows pump out more than half of the resulting oil. Experts expect that this measure in the long run will help stop the leakage by 90%. Also in the representation of BP argue that to eliminate the consequences of the oil platform to be taken all necessary measures. Stocks BP, traded on the New York Stock Exchange, went up by 1,4%. Meanwhile, the external background trades today rather negative: marketplaces in Japan have closed a significant drop in prices. The composite index Nikkei, reflecting the value of shares of 225 companies the first section of Tokyo Stock Exchange, on the basis of trades fell by 3,84%, closing at around 9,520.80 points. This was the biggest percentage decline in the index for one trading day since March 2009. European trading floors opened in minus. The pessimism of investors and contributes to increased tension in the situation with the debt problems of the eurozone, which is associated with the latest news from Hungary. The government has accused the former government of falsifying data on the state of public finances. Against this backdrop, the stock market players expect the recurrence of “the Greek script. Meanwhile, Economy Minister of Hungary Gyorgy Matolcsy to ameliorate tensions in the market, has already announced that the Hungarian government intends to reduce in 2010. budget deficit to 3,8% of GDP and adheres to those identified by the previous cabinet. Supporting the stock market sector have news of mergers and acquisitions, where today there is activity.

During the trading session, investors are active in respect of the shares of the American pharmaceutical company Talecris Biotherapeutics on the background information that the Spanish pharmaceutical company Grifols, one of the leaders in the manufacture of drugs from blood plasma, has agreed to purchase it for $ 4 billion is expected that the synergetic the effect of the transaction amount to 230 million dollars a year. Annual revenues of the combined company on a pro forma would be approximately 2.8 billion dollars per year, with 58% of revenue will come from North America, 28% – in Europe and 14% – for the rest of the country. Against this background, the quotations of securities Talecris soared 28.6%. We note that the company is part of the index of Nasdaq. Favored fold bidding and for the American energy giant ExxonMobil. Today the company announced that it is in talks to establish a new joint venture with a number of state-owned oil companies of China. In addition, ExxonMobil intends in future to expand production capacity refinery and petrochemical complex in China’s Fujian Province. In this joint venture worth $ 5 billion U.S. company owns 25% shares. Securities ExxonMobil went up at the opening of the trading session on 0,6%. A similar pattern is observed, and quotes from other companies sector: stocks Chevron Corp. and ConocoPhillips, had gone to the “plus” (0.7% and 0.5% respectively). At the same time, investors have no confidence to the shares of insurance company American International Group Inc. (AIG), because analysts agree that the company’s losses from the failed deal with the British Prudential may be significant. Paper AIG have fallen in price at the opening of trading on 0,2%. At this time the Dow Jones index was 9,932.88 points, +0.91 (0.01%), the index S & P – on 4.67 points (0.44%), – to 1069.36 points, the index of Nasdaq – on 7.87 points ( 0.33%) and amounted to 2,226.14 points.

Ukrainian Globalist
2010-06-07 16:22, Economics.

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