Stock markets are falling convulsively today: Nikkei falls to 2%, FTSE and DAX lost about 1,5%

Stock market indexes are falling rapidly - Nikkei, FTSE and the DAX dropped to record lows

In brief: Stock markets can't recover from a bearish trend and are continuing a downward trend.

Stock trades in Europe began with lowering the leading index by an average of 1,5%. The British FTSE 100 index fell by 79.74 points (-1.62%) – up to 4,837.13 points, the French CAC 40 – at 69.38 points (-2.02%) to 3373 , 51 points; German DAX – on 83,79 points (-1.4%) to 5,881.73 points, while the Swiss SMI dropped by 83.89 points (-1.37%) – up to 6044.1 points.

It was promoted as the news from China, and a negative external background: U.S. shopping malls were closed on the eve of a decrease in leading indexes, and the Japanese Nikkei dropped on the basis of the trading session on Thursday to 2.04%. Left on July 1 the statistics might indicate a slowdown of the world’s largest emerging economies – China: purchasing managers index (PMI) in the country in June fell more than analysts predicted – up to 52.1 points from 53.9 points in the previous month. Negatively on investor sentiment affected, and news that international rating agency Moody’s Investors Service placed the credit rating of Spain at the level of AAA in the list for review possible reductions, and Moody’s could lower the rating immediately into two stages due to the deteriorating of GDP and budgetary problems of the country. The agency noted that the issuer default rating of Spain in the national and foreign currencies will be reviewed within three months. It should be noted that on July 1 will be an auction in which the Spanish government intends to help out around 3.5 billion euros from the placement of five-year government bond.

Against this backdrop, minus left quotes from leading European banks: Shares of British Barclays, LLoyds Banking Group, HSBC Holdings and Royal Bank of Scotland lost in the price of 3,8% 1,9% 1,6% and 2,6% respectively. Paper French banks have fallen in price by more than 2%: shares Societe Generale, BNP Paribas and Credit Agricole have fallen in price by 2,5%, 2,6% and 3,4% respectively. German Deutsche bank Commerzbank traded in significant negative (-2,2% and -1,5%, respectively). Though unsuccessful auctions are added not only for the banking sector, share prices of mining companies, including British-Australian giants BHP Billiton and Rio Tinto also reduced (-1.9% and -2% respectively). Shares of British Chloride Group PLc, generating an uninterrupted power supply, cheaper by 4.2% against the background of information that the Swiss electrical engineering group ABB has left its attempts to acquire the company.

Ukrainian Globalist
2010-07-01 10:47, Economics.

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