Dow Jones Industrial Average has provoked panic on the European stock market

Dow Jones Industrial Average remained below the 10 000 points yesterday

In brief: Dow Jones Industrial Average continues to fall against the background of general negativity and lack of support from the Dow index bulls.

After yesterday’s fall of the U.S. stock market and the dramatic collapse of the Dow Jones Industrial Average at the end of trading, European markets opened in negative zone. Yesterday’s drop in Dow Jones Industrial Average was -40.73 points (-0.41%). Dow Jones index stood at 9899.25 points. Stock trading in Europe opened lower leading indexes amid fears about the worsening debt crisis in the region and developments in the Gulf of Mexico.

In addition, some nervousness on the stock exchanges due to the fact that today the Committee on monetary policy the Bank of England must decide on the level of the base interest rate. It is expected to remain unchanged – the lowest level in history at 0.5%. The level of the discount rate should be adopted today as the European Central Bank (ECB). Analysts predict that it will not change and will be maintained at 1%. Moreover, experts do not expect a change in ECB monetary policy at least until the beginning of 2011. Not supported market macroeconomic statistics published by national statistical offices of France Insee. According to the organization, the volume of industrial production in France in April 2010. decreased by 0,3% compared to the previous month, while analysts had expected growth of this index at the level of 0,1%. However, the positive background for trades served published today by the Federal Statistical Office Germany, data on inflation in the country in May 2010., Which on an annualized basis was, as expected, analysts 1,2%. Compared with April 2010. Inflation rose by 0.1 percentage points. Investors will closely monitor developments in the Gulf of Mexico, bearing in mind the results of which ended the U.S. trading session. By some estimates, it follows from the emergency wells 6 times more oil than was indicated in the message the British BP, but because U.S. investors, anticipating the most pessimistic scenario in the region, actively sold shares of the company, what triggered the collapse of quotations by 16%. While company representatives have already declared the invalidity of such conduct of American players, European investors cautiously reacted to the Securities British energy giant – at the opening of trading shares have fallen in price on 6,4%. In addition, the bidding opened at “minus” for the Swiss bank UBS AG, as the French Societe Generale SA has lowered the forecast on profit and market value of UBS shares at 10% and 8% respectively. However, shares of the Societe Generale SA grew by 0,7%, as published by the bank official statement said that in the II quarter of the bank does not expect the market “unpleasant surprises”.

Investors have expressed confidence as to the Securities retail store chain operator British Home Retail Group, which reported a decline in sales in I quarter of 2010. 8,1% in one of its divisions. Stock Quotes retailer plunged more than 4,8%. Securities in the UK’s largest manufacturer of fuel UK Coal Plc. at the beginning of the trading day also fallen in price on 2,4% after Hargreaves Services Plc. announced that more is not going to seek a merger with UK Coal. Chagrin investors also caused a statement that the day before, after the close of European trading platforms has made the head of the Federal Reserve System (FRS) Ben Bernanke. He said that the restoration of the American economy is not such a steady pace, how he would like. In addition, he pointed out that the pressure on the European markets in the U.S. has a debt crisis, which may require positive action by the Central Bank of the country. At the moment of time the FTSE 100 fell by 31.94 points (-0.63%) – up to 5,053.92 points, the French CAC 40 – at 25.69 points (-0.75%) to 3,421.08 points, the German DAX – on 19.63 points (-0.33%) to 5,965.12 points, the Swiss SMI – at 14.16 points (-0.22%) to 6,305.02 points.

Anrey Torbinski
2010-06-10 14:49, Economics.

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