Dow Jones Industrial climbs higher after overcoming a threat of collapse

Dow Jones Industrial Average began trading with a sharp decline but the bulls have saved the Dow index

In brief: After the fall of the major indexes at the opening of trading the U.S. stock market support level for the Dow Jones Industrial Average returned.

Dow Jones Industrial Average managed to correct the situation that prevailed in early trading and moved to the green zone. Growth Dow index continues. Dow Jones Industrial Average was 10,187.72 points, the index gained 43.91 points (0.43%) today. Trading session on Friday ended with falling of the European indices by 1%.

Most reduction occurred in the first half of trades in the second half, however, the day an unexpected downward revision of GDP data U.S. (up 2.7% to 3%), weak attempts to strangle growth. Trading in the U.S. ended opposite changes leading indexes: DJIA rose by 0,11%, Nasdaq Comp. – On 0,48%, S & P500 – on 0,51%. After a weak opening appeared on the market buying in the banking sector: The U.S. Congress decided to soften the requirements for investment banks in the final version of the bill to reform the financial system. In addition, the final version was more mild, positive role played by the very action which removes significant uncertainty, upon the adoption of the law, many players covered short positions. On this news shares of Bank of America grew by 2.7% and paper JPMorgan Chase increased in price by 3,7% the market value of Citigroup and Goldman Sachs has increased by 4,2% and 3,5% respectively. Some support markets and have the statistics: the final consumer sentiment index value of the University of Michigan in the U.S. for June was 76.0 (pre-value of 75.5).

Late last week’s summit Great Twenties was surprisingly effective: instead of the traditional and the “duty” phrases communiqué of the meeting contained a very clear economic position: tightening of fiscal policy should be “friendly to the growth, which remains” uneven “and” fragile . This means a more gradual reduction in government spending and “soft” budget policy. Delicate issue of the standard capital large banks moved to November, but about RMB was not mentioned at all. New week, stock exchanges Asia-Pacific region began to increase, but later left the leading index in negative territory: the indexes Japan, Australia and China showed reduction of about 0,5%. Futures on U.S. indexes are at zero. On the international currency market the dollar has passed several positions (euro / dollar traded near a mark of $ 1.2380), the price of oil has increased by nearly $ 2 after reporting that the first tropical storm this year, Alex went into the Mexican Gulf. The probability of disruption of oil deliveries from the region warmed up the cost of “black gold” of up to $ 79 barrel (mark WTI). Today is the day will be devoted to discussing the outcome of the summit and prospects for the U.S. financial sector, closer to the end of the week the focus has shifted to the U.S. labor market: from the media will publish the first figures on employment, the official estimate from the Ministry of Labor is expected on a Friday. According to projections, the number of newly created jobs in the economy outside of agriculture for June fell by 75 thousand

Anrey Torbinski
2010-06-28 15:58, Economics.

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