Royal Bank of Scotland Group plc (LON: RBS) shares continued to decline to 44.81 points, losing -0.89 (-1.95%) in the early trading session. Other British banks fall even lower. Anyway, Bulls still hope for better…
The U.S. stock market opened in the green zone. The Dow Jones Industrial Average gained nearly 0.5% in early trading due to the banking sector and industrial companies. Now the second half of the trading session presented some nasty surprises.
The Dow Jones Industrial Average decreased by 2,2% in late trading. Microsoft Corporation (NASDAQ: MSFT) is about 24.7 points, losing -0.33 (-1.32%). Ford Motor (NYSE: F) falls off at -3.79%. Google Inc. (NASDAQ: GOOG) shares fell to 493.28 points, decreasing to -10.43 (-2.07%).
Bank of America Corporation (NYSE: BAC) is approximately 13.69 points, losing -0.22 (-1.58%). The Dow Jones Industrial Average climbs out of red and went up to 10,637.82 points. The Federal Open Market Committee Federal Reserve (FOMC) kept the base interest rate in the target range of 0% -0.25%.
The Dow Jones Industrial is not a reflection of the problems the U.S. economy. However, the DJIA is a mirror of the world stock market. The Dow Jones Industrial Average was at around 10,653.56 points, losing -0.20% on Friday. Analysts believe that 11.000 will be a peak for the Dow in 2010, next year will be full of surprises.
Global financial markets are still shaking in all modes at the thought of a possible Greek defaulted. Yields on long-term government bonds in Greece by 700 basis points over similar Treasury securities yields USA. Thus, it seems that in America things are much better than in Greece. Unfortunately, it has nothing to do with the truth. Greek debt represents 120% of vnturennego GDP, twice more than in the U.S..
In 1970 I was 6 years old and I remember very little of that time. The collapse of the Beatles walked me to a party, as well as the football World Cup in 1970, and I have only vague memories of that year held a general election, when a Mr. Heath has changed some of Mr. Wilson. The only event that made an indelible impression on me, was the first manned landing on the moon. I still remember those grainy photographs taken in 1969 when Neil Armstrong uttered his now famous words. Then I decided that I would be an astronaut. Then I grew up.
When the policy of the Fed met in Washington to measure the economic pulse and to identify policies, their thoughts were busy prices. And to be precise – they fall. Can not say that we are now suffering from deflation. Consumer Price Index, excluding food and energy, in April and May grew by 0.9% on an annualized basis – a slight increase in 44 years.
How seriously should be considered the threat of the new reecession and the second wave of crisis? The fact that the pace of economic recovery will begin to decline, many analysts have repeatedly predicted, therefore, in a sense, the events of recent months in the stock markets should not surprise anyone. Markets with their usual harshness and inconsistency warn that lies ahead. Last summer, they signal the approach of a tipping point and the beginning of recovery. Now they predict a short pause in growth. As already noted, this often happens during the recovery period: the positive dynamics slows down, the activity also decreases for a while, then to resume with renewed vigor.
Dow Jones Industrial receives every chance to increase after the Minister of Finance. Dow Jones Industrial concluded the week with an excellent result. The DJIA will start trading at around 10,424.62 points, gaining +102.32 (0.99%). Finance Minister Timothy Geithner said that the U.S. economy is gradually recovering.
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