Dow Jones Industrial Average may end with collapse

U.S. Stock market hopes for Dow Jones Industrial

In brief: Dow Jones Industrial Average: the collapse of the European stock market could trigger a negative mood buyers at the tradings in the U.S..

Bad news from Europe may omit a positive attitude bulls on today’s bid for Dow Jones Industrial Average. Dow Jones index is under pressure from the European negativity from the start of futures trading. Dow Jones Industrial Average could fall below 10,100 mark in early trading session. So, let’s take a look what happened in Europe:

Stock trades in Europe on June 15 opened a decrease in the leading index on the background information that the international rating agency Moody’s Investors Service downgraded the rating on the eve of the Greek government bonds to Ba1 from A3 and short-term credit rating of Greece with Prime-1 to Not-Prime. In addition, Moody’s downgraded the credit rating of Athens from A3 to Ba1 with “negative” outlook. “Lowering the credit rating of the consequence of lowering of Greece’s sovereign rating from A3 to Ba1. It reflects the growing uncertainty about how to affect the economic reforms of the Greek Government on the finances of the city,” – explained one of the heads of Moody’s Thomas Amenta. These news once again focused investor attention on the problems of the eurozone countries and caused negative dynamics of the quotes in the banking sector, which first responded to the statement Moody’s: UK shares Barclays, Lloyds Banking Group, HSBC Holdings and Royal Bank of Scotland lost in the price of 0,2%, 1 %, 0,9% and 0,3% respectively. French credit institutions have repeated the same dynamic: papers BNP Paribas and Credit Agricole have fallen in price on 0,5% and 0,8% respectively. Failed auctions are added for the British retailer Tesco Plc., Published no justifiable expectations of analysts report sales. According to the report, sales of Tesco in the UK rose by 0.1% over the 13 weeks ended May 30. Meanwhile, analysts expect sales to grow by 0.4% during the reporting period. Against this background, stock quotes, company declined in price by 0,5%. Paper German Heidelberger Druckmaschienen AG – one of the leading companies producing printed products – are lost in the price of 8,4% after the company presented the financial report in accordance with which the net loss for the previous financial year amounted to 229 million euros (previous year net loss accounted for 249 million euros). We note that today is scheduled withdrawal of important statistics that will impact on investor sentiment. So, at 13:00 will be published report of the Center for Economic Research on an index of business expectations ZEW in Germany in June 2010. Analysts predict that the June value of the indicator would be 42.0 points. At the time British FTSE 100 index fell by 32.69 points (-0.63%) – up to 5,169.44 points, the French CAC 40 – at 15.2 points (-0.42%) – up to 6098.98 points, German DAX – on 29.87 points (-0.49%) – up to 6,095.13 points, the Swiss SMI – at 4.27 points (-0.59%) – up to 6,604.74 points.

Ukrainian Globalist
2010-06-15 14:58, Economics.

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