Dow Jones Industrial Average fell down rapidly, but promised to grow tomorrow

Dow Jones Industrial Average has completed a good day with bad result

In brief: Bulls failed to control the new attack bears in late trading. Good news from China have not helped Dow Jones Industrial Average to remain in the green zone.

Dow Jones Industrial Average started trading with strong growth, but at the end of the trading session began to fall rapidly. The level of support for the Dow Jones dropped significantly. Customers started to close short positions and they themselves have broken the positive trend. Bulls took the opportunity and started Dow Jones Industrial Average in the red zone. Trading in the U.S. on Monday June 21 ended lower indices. The initial euphoria associated with the decision of China to weaken the control over the yuan, had vanished. Investors have come to the conclusion that the change in the course of the Chinese currency would take time.

As a result of trading the index of “blue chips” Dow Jones Industrial Average fell 8.16 points or 0.08%, to 10442 points. The index of wide market S & P 500 closed down 4.31 points to decreasing, or 0,39%, at around 1113 points. “High-tech” Nasdaq Composite closed lower at 20.71 points, or 0.9%, at around 2289 points. After the opening of trading has seen rapid growth indexes on the news from China. Bank of China on Saturday announced that he intends to continue the reform of exchange rate policy and increase the flexibility of RMB exchange rate. In a statement posted on the bank’s Web site states that the established boundaries of fluctuations yuan (0,5% per day) remain unchanged. At the same time the Central Bank intends “to focus on the reflection of market demand, taking into account a basket of currencies”. Meanwhile, the People’s Bank of China, on Monday unexpectedly left the yuan unchanged from Friday, which led to the growth of the U.S. dollar. Central bank’s decision to re-establish the yuan against the dollar at 6.8275 was taken as a sign that Beijing wants to temper expectations of a sharp rise in the RMB in the near future, despite his statement at the weekend, indicating that he will again raise its exchange rate. According to experts, the growth rate of yuan may be limited to 1,9% against the U.S. dollar this year, as a sharp decline euro is already reduced profits of exporters. Amid the contradictions between the statements and actions of China’s stock indexes were sharply lose ground to the end of trading and closed at negative territory.

Paper oil company BP lost 4.5% of market value against the continuation of proceedings in the circumstances of the accident the Gulf of Mexico and penalties. The amount of funds spent on disaster recovery in the Gulf of Mexico is about $ 2 billion, said in a statement. This amount, according to BP, included the cost of spills of oil, sealing wells and payment of claims. Meanwhile, BP has rejected the accusation on the eve of a senator from the Democratic Party of the U.S. Ed Markey of underestimating the extent of oil spill in the Gulf of Mexico. Previously, the senator issued a domestic paper company BP Plc, under which the number of daily resulting from underwater oil wells up to the amount of 100 thousand barrels.

Robert Dudley (Robert Dudley), BP Plc designated responsible for cleaning up the Gulf of Mexico from an oil spill, has signaled that the British company will retain its U.S. assets, while other businesses will be sold to cover costs associated with disaster oil rig Deepwater Horizon. U.S. computer maker Dell Inc is in talks with Google Inc on the possible use of the operating system Chrome. Google has already announced that it expects to release its new computer system Chrome “in late autumn, which will be the main competitor of Windows from Microsoft. Google has quite successfully competes with Microsoft in the market of Internet browsers running a couple of years ago, the browser Chrome. In absolute terms, its share of the market seems small – just 6.7%, but compared to last year, when Chrome enjoyed 1.7% of the people, the current figure confirms the potential of the program. Internet Explorer’s market share has fallen in recent years to 59.9% compared with 95% in 2003. Dell shares have fallen in price on 0,6%, paper Google – by 2,2%, stock quotes, Microsoft declined to 1,8%.

Concerns about the situation in Europe retreated so far into the background. European Central Bank President Jean-Claude Trichet said that the EU will not allow the failures of the zone, evro.Blok can not go back to the days before the signing of the Maastricht Treaty establishing the European Economic and Monetary Union, said the newspaper Welt am Sonntag. Trichet told the newspaper that the decision of the ECB on May 9 to purchase government bonds in Greece, Portugal and Ireland, was acquitted, as formed “dramatic” situation, and Europe was in the epicenter of the crisis. Ministry of Finance of Germany reported on Monday that GDP growth in the II quarter will be “significantly higher” growth at 0,2% in I quarter. “All the economic data indicate that economic recovery is gaining strength. The likelihood of strong growth in unemployment has declined. Exports remain the main driving force of economic recovery, and indicators point to continued growth in exports,” – said the ministry. ECB will make eurozone adopt a more strict fiscal policy. In addition, these governments have to accept external control over the budget. ECB President Jean-Claude Trichet (Jean-Claude Trichet) said that the government should strengthen the confidence of consumers and investors, following a rigid policy to rebuild the economy of the euro area. The price of oil on Monday June 21 rose slightly against the intricate relations between traders to China’s decision to weaken the yuan’s exchange rate management. The July futures for delivery of petroleum of mark WTI have grown on 0,8% to $ 77.82 per barrel. Tomorrow, the contract with immediate execution period will be the August contract for the supply of oil. The August futures prices increased by 0.4% to $ 78.61 per barrel.

Ukrainian Globalist
2010-06-21 22:06, Economics.

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