Dow Jones Industrial Average will complete the day with collapse or a sharp increase

Dow Jones Industrial is climbing to a new highs

In brief: G-8 summit and the G-20 was the main event of the day for the U.S. economy. Dow Jones Industrial Average goes into a green zone.

Dow Jones Industrial Average reached 10,149.86 points after a sharp fall in early trading the U.S. stock market. G-8 summit and the G-20 ended with a solemn promise to the leaders of the largest economies in the world to mend budget hole by half by 2013 the ninth year, and eventually to stabilize the budget (I mean to drive the deficit to 3% of frame) in 2016. Stock markets react to the summit meeting of the volatile, Dow Jones Industrial Average rising slightly. DJIA is strong today, – as the experts say.

Objectives, as usual noble, but by the time of their execution most of the current assessors political Olympus abandoned him, but in practice will translate radical reforms can only guess. “I do not think that the summit of the G-20 as a significant impact on market sentiment,” – summed up the general opinion of the chief analyst at Danske Bank Lars Christensen. News from South Africa is now clearly dominate the news stream, “- adds Christensen. This morning the U.S. Department of Commerce reported growth of 0,4% of personal income of Americans in May, while increasing the cost of 0,2%. Against this backdrop, the national savings rate rose to 4% of total disposable income against 3,8% in April. Cost of consumer basket in May, has not changed, and the core component (without fluctuations in the prices of food and energy) grew by 0,2%. In general, over the past 12 months, Th index PCE (Personal Consumption Expenditure), reflecting changes in the value of consumer basket, increased by 1,9%, and in the core component at very reasonable 1.3%. Published indicators of financial health, if not optimal, then at least close to it. Labour America is gradually restoring fiscal foundation, was shaken during the crisis, the costs (the main engine of economy in the developed world), let a slow but growing, and inflation is more than modest and looks handmade.

Starting from today’s statistics, stock indexes on all the signs are beginning to search the roads in the northern direction. The only thing that can push the stock locomotive derailed this data on employment market. On Wednesday released statistics of new jobs in the private sector, and on Friday the Labor Department’s data on the total number of new jobs created in June and the national level of unemployment. Forecasts of analysts labor market until fairly restrained. They predict the June increase in the number of vacancies in the private sector in the range of 61-75 thousand positions, but at the same time, higher unemployment at 0,1% to 9,8% of the working population. If the actual figures will surpass expectations, the stock market will get strong positive momentum for the next week or two. From a technical point of view it is important that the index of wide market S & P500 closed today above the level of 1080 points. Only then can we talk about the depletion of corrective movements.

Ukrainian Globalist
2010-06-28 16:46, Economics.

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3 comments к “Dow Jones Industrial Average will complete the day with collapse or a sharp increase”

  1. Don Anderson Says:

    people can”t eat iphones and all the videos and cd’s the stock market is crashing . plant a garden if you want to eat. there will be no jobs by october.

  2. eng-admin Says:

    Don Anderson, I fully agree with you! iSomething is complete buble and can’t sustain a life in giant superstate.

  3. Sam Says:

    We are witnessing a controlled demolition of the US economy.

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