The stock market forecast: S & P-500 will continue to disappoint the bulls

The stock market forecast - S & P-500 decreases the second day in a row

In brief: The stock market forecast: S & P-500 continues to attempt to change the volatile situation on the market in their favor.

S & P-500 is another weak one at the U.S. stock market. On Wednesday, the U.S. stock market fell again. At this time, the average loss index was about 1% on news that ratings agency Moody’s has placed the sovereign rating of AAA of Spain to the list for a possible fall. Data from ADP also brought optimism to the market, showing growth in the number of jobs in the private sector of the U.S. in June, only 13000, the forecast increase of 60000. And finally, the curtain of the trading session selling intensified when speculators managed to press through the index S & P-500 below the level of 1040, which technically opens the way for further reduction in the range 950 – 850 points.

After closing the lower house of parliament approved a bill reforming the U.S. financial sector, now it is transmitted to a vote in the Senate. Thus, Moody’s could lower the current highest rating of Spain at once on two stages. This is particularly anxious moment, just before placing the country 5-year government bond in the amount of 3,5 billion euros. Nevertheless, in July of Spain to carry out the largest payment in this year’s 24.7 billion euros. This essentially negative for the euro does not affect: EUR / USD pair is trading near the 1.22 level. World investors in addition to debt problems in Europe are increasingly worried about the world’s post-crisis development. At least, as states reduce the incentive measures, or are struggling with the overheating in some sectors, entrepreneurial activity begins to decline. Today’s data from China, clearly confirm this trend: the June Purchasing Managers Index (PMI) in the manufacturing sector fell to 52.1 against 53.9 § § in May. These business activity, estimated the bank HSBC, showed weaker data: 50.4 paragraph in June, against 52,7 forth in May. Incidentally, the Australian PMI reflected tighter trend: 52,9 against 56,3 in May. Prices for Brent crude dropped by Thursday to mark $ 74.2 per barrel. Soon to be published a report on the Challenger loss of jobs. An hour out weekly data on primary treatment for unemployment benefits (estimate: 460 thousand). Around noon, come the June ISM index in the manufacturing sector, U.S. (forecast: 59.0). At the same time the costs will be published in the construction sector (forecast: -0.6%), as well as data on uncompleted transaction for the sale of housing (forecast: -15.2% m / m).

Ukrainian Globalist
2010-07-01 10:19, Economics.

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