Treat of collapse for the Dow Jones Industrial and oil prices today

Dow Jones Industrial Average will try to grow on a background of mixed dynamics

In brief: Bulls will try to draw conclusions after yesterday's swing on the U.S. stock market. Europe supports good statistics.

Dow Jones Industrial Average managed to overcome bearish trend yesterday. Level Dow Jones Industrial Average 10,434.17 points, +0.24% was achieved yesterday due to good economic statistics. At the same time, European stock markets closed on Thursday, increasing against the background of the Spanish auction on placement of government bonds, and this occurred despite the very poor statistics from the U.S..

“There is still the problem of sovereign debt crises in Europe, but political efforts look like that as if they are moving in the right direction,” – said the London-Mike Lenhoff, chief strategist at Brewin Dolphin Holdings Plc. “Volatility is still with us for some time”. The banking index DJ EURO STOXX BANK following yesterday’s auction is 177.26 (+0.66%). Paper Societe Generale rose to 2.70%, Barclays at 2.56%, Banco Santander to 1.59%, UBS at 1.35%. Major European indexes at the close of the previous trading session: FTSE 100 – 5,253.89 (+0.16%); DAX 30 – 6,223.54 (+0.53%); CAC 40 – 3,683.08 (+0.19%). Futures DJ STOXX 50 in the morning before the opening of trading in Europe amounts to 2,738.00 (+0.44%). European stock markets to open growth. European index of “blue chips” FTSEurofirst 300, on Thursday rose to 1.042 (+0.25%). As a result of the previous day’s yield US 10-year T-Note is 3.20% (-0.062%). Yield of 10-year German Government Bonds is 2.66% (-0.008%) compared with the previous day. Yield of 10-year U.K. Government Bonds is 3.48% (-0.053%) compared with the previous day. Oil futures in early morning electronic trading reduced due to weak economic data that raise doubts in the stable U.S. economic growth.

“An element of caution is still present, – said David Moore of Commonwealth Bank of Australia. – The U.S. economic data rather uneven, and it raises doubts about the stability of economic recovery. In terms of basic indicators of the market can afford. The reserves are large.” Mark Brent Oil (NYMEX) in morning electronic trading at 78.53 (-0.19%) and the American crude oil WTI (NYMEX) 76.41 (-0.49%). Gold futures in the morning at 1245.50 (-0.26%). Commodity Index CRB Index on the basis of past trades is 263.30 (-0.32%). Foreign Exchange in morning trading corrected after the good news about the successful placement of Spain on its debt securities. This is supported by the euro and relieved the tension among market participants. The dollar index ICE, which reflects the value of the U.S. currency against the trade-weighted basket of other currencies, is 85.89 (-0.08%).

Forecast for today: In our opinion the absence of vital statistics today, we can expect that the foreign exchange market will continue to consolidate at the levels achieved in anticipation of new news and statistics.

Igor Tringlers
2010-06-18 18:53, Commodities.

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