Dow Jones Industrial climbed higher and higher as the FTSE 100 won 1% today

Dow Jones Industrial Average went to the wake of China and Europe

In brief: The rapid growth of the European stock market forced DJIA up almost 2% today.

Dow Jones Industrial Average has prevented all attempts to impose a bear trend. Dow index is at around 9,918.45 points, having won 174.83 points (1.79%) for the last day. DJIA rising steadily against the background of recent statements by Chinese officials and the successful closing of European stock exchanges. European stocks have grown up to the auction on Wednesday 7 July. Shares of banks were on the rise in anticipation of information on methods for stress tests. BP shares have risen in price thanks to speculation of a sale of the share of Arab investors. Pan-European Stoxx Europe 600 index rose by 1.3% to 246.06 points, Britain’s FTSE 100 – has increased by 1% to 5015 points, Germany’s DAX – on 0,8% to 5993 points, the French CAC-40 – for 1,7 % to 3483 points.

Stress tests conducted by the U.S. government for the banks a year ago, helped stocks recover from the financial sector by 36% in the next 7 months. The European plan could lead to different results, analysts said. Investors say they do not know whether some banks hide their bad debts, whether they have enough capital to withstand the defaulted debt of European countries and whether European governments to afford measures to rescue the banking sector. The financial authorities of the European Union has still not disclosed the criteria for tests, including tests consider whether the risks of sovereign defaults. Economic data from Europe were generally negative. The volume of industrial orders in Germany in May fell by 0.5% in monthly terms. It was informed by the Ministry of Economy of Germany. A month earlier the increase was 2,8%. Analysts polled by Bloomberg, predicted an increase in such reserves by 0,3%. GDP in the euro area in the I quarter has grown on specified data on 0,2% in quarterly terms and by 0.6% – an annual, has informed the European statistical office Eurostat. Application of Spanish Telefonica SA to buy stake in Brasilcel NV, jointly with the Portuguese company Portugal Telecom, which owns the largest operator of wireless communications services in Brazil Vivo Participacoes SA, can be supported by the court of the European Union, which has the right to revoke the veto by the Portuguese Government. European Court of Justice in Luxembourg could decide tomorrow that the special rights of the Portuguese Government in determining the future of the country’s largest telephone companies violated the rules of the European Union. The Court has repeatedly invalidated the so-called “golden shares” that give governments a veto over the decisions of former state monopolies. Swedish technology group Hexagon AB said on Wednesday that it acquires U.S. engineering firm, Intergraph for $ 2.13 billion in cash. Hexagon said that it wants to sell shares of Intergraph for $ 850 million after the completion of the transaction. Hexagon also stated that it expects “substantial” savings from the deal, and that Intergraph sales will be $ 830-840 million in 2010, Intergraph was acquired in 2006 by a group of investors led by private equity firms Hellman & Friedman, TPG Capital and JMI Equity. It is expected that the transaction be completed in the third or fourth quarter of 2010 Hexagon Shares rose 7.2% on this news. BP shares have risen in price by 4,8%. Unnamed investors from Saudi Arabia wants to buy 15% stake in British oil company BP, said on Wednesday Saudi newspaper, without giving the source of such information.

The delegation of Saudi investors will go to London to direct negotiations with BP, transmits edition al-Eqtisadiyah. It did not reveal their sources and the names of potential investors, saying only that some members of the delegation represented the country’s energy industry. Meanwhile, the executive director of BP, Tony Hayward, has met today with investors and representatives of the oil industry of another major oil exporter – United Arab Emirates. American authorities intend to monitor all major financial transactions, including cash, oil and gas company BP. Letter from the requirement to report all large transactions and transactions U.S. Attorney General’s Office sent to the British company on June 23. At BP, confirmed receipt of the message and assured that the answer to it will be given promptly. Government of Germany has approved the reduction of fiscal deficit at $ 103 billion (81.6 billion euros) by 2014. According to Chancellor Angela Merkel, the reduction of budget deficit to the level of 2,7% of GDP should not adversely affect the restoration of the national economy. Thus, Berlin is not only decided to set an example for people in the united Europe under threat of budgetary and debt crisis, but also openly ignored Washington’s stance, calling for major world economies to take no action, carrying a threat to the recovery of global GDP. “Germany feels responsible, it seeks to give a signal to other members of the eurozone to tighten financial discipline. However, to achieve this goal can only be the only way – to submit your own example, “- noted economist in London unit of the bank UniCredit. Currently, the most serious financial situation than the sum of Greece, Spain, Portugal and Italy, the authorities are taking measures to reduce budget deficits in order to prevent the spread of the budget and the debt crisis across Europe.

Anrey Torbinski
2010-07-07 18:52, Economics.

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One comment к “Dow Jones Industrial climbed higher and higher as the FTSE 100 won 1% today”

  1. marketsinandout Says:

    I guess everybody are waiting for the fall which might not come easily before Dow hits 10850, when last bear has turned into bull, visit my blog for Dow updates

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