Dow Jones Industrial Average is falling rapidly, but remains green

Dow Jones Industrial moves into the future in the green zone

In brief: Dow Jones Industrial Average has failed to keep the growth of 1%, but the decrease of the index does not turn into a collapse. The level of support from the bulls fell slightly.

Green zone keeps Dow Jones Industrial Average. At the time Dow Jones Industrial kept at a mark of 10,463.42 points. Dow Jones growth rate of +12.78 points (0.12%). On Monday, June 21, the American stock market in the first half of the trading session demonstrates the positive trend due to news about the plans of the Chinese bank’s “release” Yuan.

The Obama administration and the EU has long been pressure on China, calling it to revalue the national currency, but the one driven by his line, and reiterated on many occasions that the yuan will be reconfigured only when China considers it necessary. Now monetary management “Celestial” decided to make changes in monetary policy, but pointedly declined from simultaneous revaluation – to the West, it became clear that China is not going on about Obama, but rather should stay the course, regardless of political pressure. In any case, the reaction of stock markets to this news was inspired – like “large caliber” of economic news are rare, and when there are, leave no chance of bears. So, today the Asian rally smoothly flowed into a European, aside from the rally did not go, and the United States market, one of the key beneficiaries of a more flexible currency policy of China. Since the U.S. is in fact informative calm (macroeconomic statistics in the calendar does not appear, and for major corporate reporting season has not), then all the enthusiasm and capital participants in the session was intended to wager the Chinese news.

Index broad market Standard & Poor’s 500 is trading with an increase of 0.58% on a mark to 1,124.02 points, the light blue-chip Dow Jones Industrial Average adds 0,73% to a level of 10,526.97 points and the index of high-tech Nasdaq Composite traded in positive territory at 0.31% on a mark to 2,317.00 points. The dollar index declines by 0.10%, gold is losing 0.3%, while silver is trading in positive territory at 0.1%, industrial metals and energy trading at a significant increase due to incentives, the Chinese monetary authorities – the decision to give greater exchange rate flexibility, most bidders is associated with the stability of the economy “Celestial”. In the composition of the index of blue chips traded in the red, only a few, including Microsoft, Wal-Mart, Yahoo. Are added over 1% shares of American Express, BofA, Caterpillar, Wells Fargo and others, have built up over 2% of paper AIG, GE, International Paper. Quotes Alcoa and does soared 8.7%. Branches in the context of the market look weaker retail, municipal sector, the sphere of consumer goods and services. Better the market, respectively, look auto industry, the commodity and financial sectors. U.S. steelmaker today were in the midst of the rally. Amid news of China’s investment environment have appeared numerous comments of analysts, egged rally in industrial metals sector. U.S. Equities Steel traded with an increase of 5,9%, AK Steel Holding – by 5,4%, and Nucor – by 2,2%. “For the company” advanced coal producers – Massey Energy shares climbed 5,9%, Peabody Energy – by 4,3%.

Igor Tringlers
2010-06-21 19:11, Economics.

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