Paint it red: stock market can rescue only a miracle today

Global trade in the stock market are negatively trend

In brief: Stock markets around the world suffer because of European concerns and reduce the activity of investors. The world economy needs a miracle to restore faith in the future.

Since yesterday, the majority of the stock indicators around the world re-painted in red. The pretext for another bout of panic sales served as a message from Spain, where on Saturday the Central Bank took control of a small Commercial Bank Cajasur, saving him from bankruptcy. Before there were rumors that the bank provided 550 million euros is not enough to stabilize its financial situation. Is not excluded that the figure may be increased to 2 billion euro, which is very impressive for a small amount of the bank.

Coupled with the release on Monday its annual review of the Spanish economy from the International Monetary Fund, where experts identified the need for a radical revision of labor legislation and the consolidation of the banking system in the country, the news prompted investors seriously worried about the fate of European banks and further defined the dynamics of financial markets. The cost of short-term borrowing on the interbank market soared yesterday to its highest since last summer marks. Currency traders news was seen as a pretext for the next session of active sales of European currencies. Pair EUR / USD decreased following the last session on 1,4% – to 1.238 marks. This morning it dropped below the level of 1.23, leaving no chance for the rebound in commodity and stock exchanges. Similarly, the emerging picture of trading on the U.S. stock market: after yesterday’s Drawdown U.S. index futures on 0,7-1,3% they lose in the morning is 1,5%. European stock market trading on Monday completed the most part in red. Major stock indicators Asia-Pacific region left in the morning in minus even further – by 2-3%. In addition to concerns about the financial state of European economies, market participants worried about the situation in Korea, where over the past few days the situation is much hotter, and even North Korea troops put on alert. At the same time stock quotes, defense companies in South Korea are growing.

Oil Market

The U.S. dollar strengthened, external news background is poor and means “black gold” has no choice but to continue to move within the downtrend. Not the slightest reason to rebound yet. Yesterday, oil prices once again finished the day in negative territory. The July London Brent contracts on the exchange ICE fell on Monday for a further 0.7% and were fixed at around 71.17 dollars per barrel. Reducing lasted for eighth consecutive session. Apparently, on Tuesday hydrocarbons also can not get into the green zone: in the morning they are losing more in the range 1,5% of market value. President Barack Obama recently created an independent commission to investigate the cause of the explosion, which occurred in April at the British Petroleum oil platform in the Gulf of Mexico. The Commission is likely to work in parallel with law enforcement investigations, and it is possible that in connection with the crash will be prosecuted. Meanwhile, the BP is still not completely eliminate the leakage of oil from underwater wells.

Ukrainian Globalist
2010-05-25 12:44, Economics.

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