European panic could trigger new collapse for the Dow Jones Industrial Average

Dow Jones Industrial Average climbed higher

In brief: Bad news from the UK and the euro area are mixed with the good news the U.S.. Dow Jones Industrial Average continues to grow.

New highs beckon Dow Jones Industrial Average. Shoulder support for the bulls Dow Jones rose by 10.5% over the last half hour. At the time Dow Jones Industrial Average was at 10,318.77 points. The way the index is up +127.88 (1.25%,). At the same time, we get bad news from Europe. According to the Office for Budget Responsibility (OBR), a coalition government of Prime Minister David Cameron, over the next few years the UK will need to involve less leverage than expected.

Nevertheless, long-term growth will also be below previous estimates. Forecasts for economic growth had been reduced to 2011 from earlier estimates of the Government’s 3.25% to 2.6%. In 2012 and 2013 the growth rate of the British economy would be 2.8% in 2014 – 2.6%, while the March prediction set for each of these three years, the growth rate of 3.5%. With regard to the improved prognosis for the largest loans, the Committee on Budget has reduced expectations for net borrowing at £ 23 billion ($ 33.45 billion) for a total of £ 544 for 5 years until the spring of 2015. This decrease can be attributed to anticipated increases in tax revenues and reduced unemployment. Citigroup economists believe that the main problem of the United Kingdom is to maintain fiscal stability. Forecast shows that the country has more chances to cope with the budget deficit than the debt-ridden European countries. Good news came from the corporate sector of the U.S. economy: the publishing house FactSet Research Systems recorded a net profit for the third quarter ending May 31 with a $ 38.7 million, or 81 cents a share, compared with $ 38.5 million or 79 cents a share a year earlier. Analysts on average expected profit at 77 cents per share. Revenue for the period rose 4% to $ 160.3 million In addition, the company sounded forecast results for the fourth quarter. Thus, expected earnings of 78-80 cents per share, and revenue will be at the level of $ 165 – $ million 169.

Igor Tringlers
2010-06-15 16:51, Economics.

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