Collapse: One terrible day for the Dow Jones Industrial

Dow Jones Industrial Average ended the day collapse

In brief: New and powerful enough collapse occurred on the U.S. stock market. Dow Jones Industrial Average has fallen off to 1.43%.

Dow Jones Industrial Average confidently went into the red zone. The collapse occurred at the end of trading on the stock market today. The level of support for the Dow Jones Industrial in the second half of the trading session substantially reduced. Trading in the U.S. on Tuesday June 22 ended lower indices. The pressure on the market have weak data from the housing market. In addition, sank sector oil companies against the background of falling prices for black gold. As a result of trading the index of “blue chips” Dow Jones Industrial Average fell 148.89 points or 1.43%, to 10294 points.

The index of wide market S & P 500 closed at decreasing 17.89 points or 1.61%, at around 1095 points. “High-tech” Nasdaq Composite closed lower at 27.29 points or 1.19% at around 2262 points. Economic data have disappointed players. Sales of homes on the secondary market in the U.S. in May this year at an annual rate decreased by 2,2% and amounted to 5.66 million units. This was reported today, the National Association of Realtors USA. It is projected that the figure for the previous month is 6.2 million units. World’s largest chip maker Intel and the Federal Trade Commission, U.S. (FTC) filed a motion to stay the proceedings. The parties continued negotiations on the settlement of the claim by the FTC, in which Intel is accused of abusing a dominant position. Intel shares have fallen in price by 1%. Canada’s largest pharmaceutical company, Biovail Corp. buying its American rival Valeant Pharmaceuticals International for $ 3.3 billion The deal will allow the combined company to save on taxes and other expenses up to $ 175 million a year. This Valeant will retain its name and current executive director Michael Pearson. Valeant shares went up by 8,5%. BP shares have fallen in price on 2,1%. The U.S. government has exhibited the BP is the third bill for oil spill in the Gulf of Mexico, resulting in a massive environmental disaster, says the official report of the White House. “The administration of Barack Obama today sent a third by BP for $ 51.4 million to pay for operations to eliminate leakage of oil from the platform Deepwater Horizon and its consequences” – the report says. These will be used to pay for more than 20 federal departments and agencies in three U.S. states most affected by the accident on the platform. It also said that BP and other responsible parties in good faith paid the previous two accounts on the same grounds, totaling $ 70.89 million. As part of the U.S. Federal Reserve will create a new regulator, which will be responsible for the market of consumer financial products. The Democratic majority of the House of Representatives stated that according to the proposal of the Senate to put a new regulator within the Federal Reserve stepped back from earlier plans to create an independent agency. The agency will deal with monitoring the mortgage market, credit cards and other consumer financial products. President of the Federal Reserve Bank of Dallas Richard Fisher on Monday again voiced his point of view according to which the problem of “too big to collapse” of financial institutions may need to be addressed by breaking up excessively large banks. “There is a limit on the size and scope under which the world’s authorities should have the courage to have a very bright, red line. As long as they do not, the danger posed by units that are considered too big to collapse, will continue.” Federal Reserve Chairman Ben Bernanke expressed confidence that the U.S. economy manages to avoid a second wave of the crisis, though unavoidable risk to economic recovery. Today begins a two-day meeting of the Committee on Open Market Federal Reserve. No special changes are not expected, and the central bank must again declare that the federal funds rate will remain at very low levels during the “long period”. However, comments about the economy may be a little more cautious, given the weak data on the number of jobs outside agriculture, as well as data on retail sales and housing market in May.

The threat of recovery represent a debt crisis in Europe, the high fluctuations in financial markets, the increased caution of consumers, a weak housing market and high unemployment. That is why the Fed will undoubtedly leave its key bank lending rate to record lows, keeping rates on some credit cards and consumer loans, respectively, lower. In the market remain concerns about the debt problems of the eurozone. The global crisis has exposed weaknesses in the economic structure of the euro zone, because of which she was especially vulnerable to recession, warned credit rating agency Fitch. The rating agency stated that, although the risk of disintegration of the euro zone in the short and medium term is low, cases of “extreme volatility of markets” will be repeated until the economic recovery and reduce budget deficits in the region. Meanwhile, economic data from Europe proved to be good. German index of business confidence in June unexpectedly rose to 2-year high. The fall of the euro and the global economic recovery improves the prospects for local exporters. The index of business climate in Germany, based on a survey of 7 thousand heads of German companies, rose to 101.8 points, which was the highest level since May 2008. With regard to the values of the index in May this year, it was reported at around 101.5 points. In turn, 38 experts polled by Bloomberg, predicted to reduce the figure to 101.2 points. “We are seeing very high rates of economic growth. Given the external demand, economic recovery will continue in the second half of the year, albeit at a slower pace,” – says the chief economist at Commerzbank AG Joerg Kraemer. France and Germany have agreed to press for more regulation of the financial system during the forthcoming meeting of leaders of the twenty largest economies in the Canadian city of Toronto at the end of this month. The leaders of France and Germany joined together on Monday and worked out together a unified position on how the rich and developing nations should work towards more stringent regulation of the financial sector at a summit in Toronto next weekend.

The Greek Government intends to present this week a draft pension reform in the country. Among its major provisions – raising the end of 2013 the official retirement age for women from 60 to 65 years, as it is today – for men. In this case the real retirement age could rise by 2015 from the current 61.4 years to 63.5. By 2015 it is planned and the expansion of the minimum to obtain a full pension, the period of mandatory savings – in the form of regular payments to the expense of future pension employee – from the current 35-37 years to 40. The price of oil on Tuesday, June 22 declined on the basis of volatile trading. One of the factors that exert pressure, was the decrease in the U.S. stock market. The August futures for delivery of petroleum of mark WTI fell 1% to $ 77.85 per barrel. The July futures for the supply of natural gas became cheaper by 2.4% to $ 4.75 per million British thermal units. Gold prices rose slightly against the background of low trading volumes. Investors did not take action in anticipation of the decision on interest rates in the U.S.. As a result of the regular trading session on the New York Mercantile Exchange, NYMEX, the August futures for gold delivery rose $ 0.10 to $ 1,240.80 per troy ounce.

Ukrainian Globalist
2010-06-22 21:10, Economics.

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