Forecast: Dow Jones Industrial Average will avoid the collapse and will test new highs

Asian trading forced the bulls to Dow Jones to increase trading volumes

In brief: Dow Jones Industrial Average moves to a new record thanks to the overall bull trend and the positive values we in the stock markets in Asia and Europe.

U.S. Stock market opens on a negative note. Support for Dow Jones Industrial Average is at record low levels. Trading volume on the Dow Jones Industrial Average rising. Today the Dow Jones reached new highs – analysts believe. Dow Jones will be released at the beginning of trading with the level of 10,404.77 points. We should admit, that on Wednesday, June 16, Asian stock markets were in bloom. Sensitivity to the risk declined markedly, and investors once again returned to risky assets.

Positive statistics on industrial production from the U.S. brought its contribution to the growth of the Asian indexes. Despite the fact that at this point, investors and traders are on a wave of positive, do not forget that now the main theme of many countries is the budget deficit. Japan may raise taxes in order to kill two birds with one stone – to patch holes in the budget and limit the issuance of state bonds in the coming years. India is also conceived to cash in on taxes, and offers tax all investment transactions – trade stocks and investments in mutual funds shares. This measure would affect both foreign investors and domestic. Japanese indexes have shown growth in average on 1,5%, Nikkei index turned green at 1.81%. The Australian Index S & P / ASX 200 added 1.20% and closed at 4559 points. Pakistani indexes showed the largest gain – more than 2%. The Indian Sensex index showed modest growth 0,29%. Index MSCI Asia Apex 50 gained 0.63% to 719.86 points. In Hong Kong and China today a national holiday, markets closed. Prices for futures for Brent crude jumped, copper has risen. Government bonds in Japan and Australia have fallen in price. Prizes for the CDS on bonds of the Asian region also decreased. The buyer pays the seller CDS premium for the protection of the bonds, corporate or public, from the default. In case of default the seller pays the par value of securities and assume losses.

The Japanese yen fell against the dollar and the Australian dollar strengthened against the dollar to speculation that Russia might include the Australian and Canadian dollar in its reserves. In Japanese markets are best looked the manufacturing companies of industrial machinery and equipment. Mitsumi Electric, a manufacturer of electronic devices rose by 4.78%. Shares Nikon, specializing in production of lenses, cameras and microscopes, have grown up on 5,62%. On the Australian stock exchanges commodity companies play a major role in the improving prospects of world economy and growing demand for fuels and metals. Australian coal mining company Aquila Resources added to the capitalization of 4.17%, and oil and gas company AWE grew by 4.41%. The mining company CuDeco soared to 8.71%.

Anrey Torbinski
2010-06-16 14:25, Economics.

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