Dow Jones Industrial was hit below the belt as gold prices had crashed

The buyers refused to long-term deals on DJIA

In brief: The massacre of bulls and bears evolved in volatile trading on the U.S. stock market. Dow Jones Industrial Average continues to lose support.

DJIA completed next week with losses. Dow Jones Industrial Average was unable to recover by the end of the trading session on Friday, losing -0.47% per day. Trading in U.S. stock indices ended lower. Players for a long time analyzing conflicting economic data, which led to volatility in the auction. Last week the indices suffered heavy losses, as the gold prices decreased.

As a result of trading the index of “blue chips” Dow Jones Industrial Average fell 46.05 points or 0.47%, to 9,686 points. The index of wide market S & P 500 closed lower by 4.79 points or 0.47%, at around 1023 points. “High-tech” Nasdaq Composite closed at lowering 9,57 points or 0.46% at around 2092 points. Last week the index Dow Jones Industrial Average fell by 4,5%, the index of wide market S & P 500 fell by 5%, and high-tech Nasdaq Composite has fallen off to 5.9%. Economic data from the U.S. proved to be controversial, but the expected market report on employment was a lot of negatives. The number of jobs outside agriculture in the USA in June fell by 125 thousand, while analysts thought that the decrease in amount of 110 thousand unemployment rate fell to 9.5% – investors consider it a positive factor.

On the other hand, in the U.S. the volume of industrial orders in May of this year decreased by 1,4% compared with April. This was said in a statement the Ministry of Commerce. Analysts expect decrease in this indicator should not exceed 0,5%.

With the exception of orders for vehicles, manufacturing orders in May fell on the April figure at 0.6%. Unemployment in the euro area in May 2010. unchanged at 10%. This is stated in a report published today the European statistical agency Eurostat. Analysts predicted that this figure will be 10.1%. Some of Germany’s banks exercised their legal right not to publish confidential information, which would have drawn a clear picture about the size of their capital and that they do not pose a threat to the financial system as a whole. This right is jealously guarded the laws of Germany and the law of the European banks and allows banks to break all the plans of European governments.

Now, as investors increasingly worry about the health of banks in countries of the European bloc, such resistance on the part of banks, may result in a backlash. The previous round of stress tests of 22 major European banks, whose results were made public in October, faced with a wave of criticism, because the report did not reveal any names of banks, no information about the problems, no other details for each country.

On Thursday in an interview Borsen-Zeitung chapter of the Association of State Banks Christina Brand, representing the interests of the federal land banks, said that the “skeletons in the closet is no longer any”, and that this year’s economic recovery in Germany – many economists have raised the growth forecast to 2 % – will solve most of the cyclical problems associated with bad debt, banks are faced

However, investors more concerned with the losses associated not with the German and Greek, Spanish and Portuguese assets. According to the Bank for International Settlements, only one of Greece is concentrated 40 billion dollars of potential losses of German banks.

Many fear that if Greece will have to restructure the debt, banks have lost billions of euros. Such losses eat up their capital and significantly reduce the possibility of crediting the real sector, both domestically and abroad.

Google Inc is in talks to buy ITA Software, one of the largest U.S. developers of web services matching the best rates for websites of travel companies and airlines. The cost of the proposed transaction is valued at $ 700 million by the expectations of the Internet giant’s services will improve as the ITA itself search engine Google, and its system of online content.

Possible transition ITA Software in the hands of Google much alarmed key players the U.S. travel industry. ITA Software Services use, American Airlines and Continental Airlines, as well as popular travel sites including Hotwire, Kayak, Orbitz and Bing from Microsoft. In order for IT-company did not get into the hands of Google, Kayak and Orbitz even made a proposal on the joint acquisition of ITA Software. However, Google has an exclusive right to negotiate with ITA Software, said a source who is familiar with the matter. Google shares have fallen in price on 0,6%. Former Federal Reserve Chairman (Fed) Alan Greenspan said the recent stock market drop is typical for a phase of recovery, as well as due to a greater extent with the factors of international instability, the problem in the United States. “That we are now seeing in the financial markets, quite a common phenomenon. As far as I can tell, it was typical of that pause, which is now happening in the economic recovery,” – said Greenspan told CNBC. Usually we say that the picture on the stock market due to economic developments, but I am sure that the feedback is much more. We have not yet begun normal economic recovery. We just came out, I think, from the most extraordinary and dangerous world financial crisis, which the world still had not seen before.” “But the recent decline was more international than domestic U.S. recession,” – he said, adding that “the reason is the problem of internal instability of the European system.” Gold price on Friday, July 2 rose against a background of low trading volumes in the run-up to long weekend in the U.S.. As a result of the regular trading session on the New York Mercantile Exchange, NYMEX, the August futures for gold delivery have increased by 0,4% to $ 1,207.70 per troy ounce. During the week gold cheaper to 4%. The price of oil on Friday, July 2 fell on the day and week under pressure from published economic data. The August futures for delivery of petroleum of mark WTI have fallen by 1,1% to $ 72.14 per barrel. Last week, oil fell by 8,5%.

Anrey Torbinski
2010-07-04 08:57, Economics.

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