Dow Jones Industrial Average: the danger of collapse remains at the market of blue chips

Dow Jones Industrial Average remains at the level of the of the trading start

In brief: Dow Jones Industrial losing ground against the backdrop of bad news from Spain, but the bulls do not cease to support the index.

Dow Jones Industrial Average may begin a sharp decline after the release of bad news from Spain. Dow index continues to strive for higher levels of 10.200 points, but the bears are making serious attempts to attack. Trading volumes are falling. Also disappointing customers news from Greece. Traders seemed unfazed by news that credit rating agency Moody’s lowered its rating on Greece’s debt to junk status. At the time Dow Jones Industrial is located at around 10,233.14. Index of blue chips was up to the level of 10,270, but the growth stopped. Overall growth for the Dow Jones today was +22.07 points (0.22%).

The Moody’s rating agency is concerned about the fate of the aid package that the IMF and the eurozone plan to allocate Greece. At the same time, Fitch announced that it is not going to review the rating of Greece. Following the decision of Moody’s euro exchange rate went down. In Forex trading, he sank below 1.23 dollars per euro. Dramatically cheaper and gold – the price today fell by 5.7 dollars to 1 U.S. $ 224,5 per troy ounce. Oil prices, which in electronic trading on the New York after the publication of statistics on industrial production in the euro area went up dramatically, to moderate the pace of growth. If the price of a barrel of oil in the morning Light yesterday’s day rose by 2,5%, now the figure is about 1% (crude oil is trading near 74.5 dollars). The situation in Greece and other countries hit by the debt crisis, worrying States locomotives EU – Germany and France. Chancellor Angela Merkel at a press conference with Nicolas Sarkozy said that Europe needs to create “economic government”. Berlin has proposed changes in the Lisbon Treaty so that countries offending EU fiscal rules can be a time to deny the right to vote. Merkel drew attention to the problems of Spain. According to her, Madrid “should talk” about the economic difficulties. The Chancellor said that Spain could count on funds from the emergency fund eurozone, which amounts to 750 billion euros. “Spain and other countries know that they, if necessary, can use this mechanism”, – underlined Merkel. The Spanish government has complained that some foreign banks refuse to lend the Spanish credit and financial institutions. At the same time in Madrid claim that the repetition of the Greek script in Spain can not be.

Igor Tringlers
2010-06-14 20:03, Economics.

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