DJIA collapse: crisis before restoration or the beginning of the end?

Unpleasant statistics bring problems for Dow Jones Industrial Average

In brief: Falling indexes at the major markets caught investors by surprise. Predictions were confirmed exactly the opposite. Market players are set extremely pessimistic. DJIA could play back the losses.

DJIA can restore a week of falls in one day – report the Open Knowledge analysts. A series of avalanches of various U.S. markets prompted investors to grab the head. Falling Dow Jones Industrial Average was quite unexpected, although the week continues with a flow of negative news. Specialists are in different assessments of the situation – some believe that panic is not worth it, others hold a another opinion.

Block unpleasant statistics from the U.S. has added confidence market players. Negative figures set the tone for the day. Even prior to opening it became known that investors’ expectations regarding the labor market realized the exact opposite. The number of Americans receiving unemployment benefits rose sharply in spite of forecasts for the reduction. Last week, the index of first seeking the benefit of U.S. citizens jumped from 459 000 to 472 000. While the number of continuing to receive unemployment benefits also rose from 4573 000 to 4,616,000. Unemployment in the United States has already grown to 9,8% according to forecasts, but open your eyes to the current labor market situation should be a monthly report of the Ministry of Labor. The report will be released today, it will help investors navigate the further policy of investment. Another enormous trouble for DJIA was a collapse in U.S. real estate market. The sharp decline in sales of homes by 30% in May, negating the growth in April to 6%. Thus the decline of this indicator in annual terms amounted to 15,6%. Not long to wait and reducing vehicles on the market – the total car sales in June fell from 11.64 to 11.08 million compared to the previous month.

Still, analysts do not lose heart, predicting rapid growth in the indices in the stock market. The widespread deterioration in economic indicators, former Fed chief Alan Greenspan described as a pause before restoring the economy. At the same time, other experts are uncertain in the near future to overcome the crisis and believe that the overall decline only shows the unfavorable situation in major markets. To date, market participants are quite pessimistic mood – blame it for quite a long fall, and the dramatic collapse that occurred recently. In total, the main indicators lost on 0,3-0,4%. This is the worst figure in the world economy, as European stock markets, released a day earlier in the positive region, have suffered much more – there collapse reached 1,8-3%.

Ukrainian Globalist
2010-07-02 13:30, Economics.

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