Nasdaq, DJIA and S & P 500 have collapsed at the beginning of a new quarter

Dow Jones Industrial Average has failed the first test of a new quarter

In brief: Nasdaq Composite, Standard & Poor's 500 and Dow Jones Industrial Average finished trading in the red zone, buyers were playing on short-term positions.

DJIA continues to weaken against the negative statistics. Bulls cleared shoulder support for Dow index at the beginning of the trading session. Trading in U.S. stock indices ended lower. The pressure on the market has had a series of negative macroeconomic data published in recent days. As a result of trading the index of “blue chips” Dow Jones Industrial Average fell to 41.5681 points or 0.43%, to 9732 points. The index of wide market S & P 500 closed down fall to 3.34 points or 0.32%, at around 1027 points. “High-tech” Nasdaq Composite closed lower at 7.88 points or 0.37% at around 2101 points.

Over the past few days came a host of economic reports of major concern to investors. U.S. consumer confidence index in June fell from 63.3 to 52.9 points in expected to fall to 62.8 points. Automatic Data Processing Inc. and consulting firm Macroeconomic Advisers reported that the number of jobs in the private sector of the U.S. in June rose by 13000. Economists forecast a rise in the number of workers in the private sector in the U.S. in June 60000. In the revised data, in May, the number of jobs in the private sector grew by 57,000 – the previously reported growth of 55000. In a report published on Friday the Labor Department on the number of jobs outside agriculture, which usually produces a strong effect on markets, and weak ADP data in this regard, alarmed investors. PMI for the manufacturing sector in the U.S. (ISM Mfg Index) in June 2010 fell by 3.5 points – from 59.7 points in May to 56.2 points. Analysts polled by Bloomberg expect a decrease ISM in June 2010 to 1.1 points – to 58.6 points. The index value above 50 points is an indicator of growth in the U.S. manufacturing sector. In addition, the number of initial applications for unemployment benefits in the U.S. as of June 26 rose by 13 thousand compared with a revised upward previous rate and amounted to 472 thousand Such data released today, July 1, Bureau of Labor Statistics U.S.. Analysts predicted that the figure will drop to 455 thousand. Tomorrow will come an important report on the number of jobs outside agriculture in the USA, and the investors have unfounded fears about this. From China came next negative data. Industrial production growth in China slowed in June at a greater magnitude than predicted by economists, adding confidence to expectations that the third-largest economy in the world is gradually cooled.

Index PMI, calculated by the government, fell for the second time in a row, reaching a value of 51.2. In May, the index was fixed at 53.9. The median forecast of experts polled by Bloomberg News, was 53.2. Data from Europe also were not very optimistic. Business activity in the UK manufacturing sector continued to rise in June, but its growth rate slowed down somewhat. Index PMI, calculated by Markit / CIPS, down from the value of 58, achieved in May to 57.5 in June. The economist predicted fall to 57. The price of oil on Thursday fell on July 1 under pressure from a series of disappointing economic reports. The August futures for delivery of petroleum of mark WTI have fallen by 3,5% to $ 72.95 per barrel. The August futures for delivery of natural gas increased by 5,2% to $ 4.85 per million British thermal units.

The gold price on Thursday, July 1 fell by 3,2% against the general decline in the stock and commodity markets. This significant decrease is also explained by low-volume trading in anticipation of long weekend 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 have fallen by 3,2% to $ 1,206.70 per troy ounce. The dollar today fell under the pressure of economic data. Support for the euro also helped the successful auction on placement of the Spanish government bond. Today the Government of Spain managed to realize the market five-year Eurobonds for 3,5 billion euros. The volume of applications exceeded the amount of accommodation in 1,7 times. The average yield was 3.657%.

Euro has risen in price to $ 1.24 versus $ 1.22 on Wednesday. The dollar fell against the yen to 87.2 against 88.4. In relation to the yen, the euro rose to 108.4 against 108.2. The British pound rose to $ 1.5 versus $ 1.49. The dollar index, which allows to estimate the value of the dollar against a basket of six major currencies, fell to 84.91 against 86.03. Citigroup shares rose 0.2%. The U.S. Treasury announced the completed sale of 1.1 billion ordinary shares of the banking corporation Citigroup, which became the second transaction for the implementation of securities lender, said in a press release agency. The transaction amount exceeded $ 4.4 billion, given that at the close of the previous bidding for one paper giant gave $ 4.03. Thus, at present the Ministry of Finance through the Morgan Stanley generated $ 10.5 billion for the implementation of 2.6 billion shares, representing one third of the 7.7 billion shares received by the government program to buy out troubled assets. The plans of departments further sale of shares of the creditor. Given today’s reports, the proportion of the Finance Ministry in the capital of Citigroup fell from 27% to 17,6%. Chinese authorities have restricted the operation of Google search service in the country. The company reported that Chinese users were deprived of service Google Suggest, which represents the technology of auto-line search query based on the overall statistics of the most popular queries.

In March, Google closed its search service in China and began to redirect users to a server in Hong Kong. Today, the corporation said that they intend to abandon the current scheme in connection with the threat of PRC authorities to refuse to renew the license. Relationships Google and Beijing worsened earlier this year after the hacker attacks on mail servers in the U.S., carried out from the territory of China. After that Google refused to censor in their search queries, which insist the Chinese government. Google shares have fallen in price on 1,2%. International rating agency Fitch Ratings revised its outlook for global growth in 2010 upwards to 3.1% from 2,8%, which were cited in the prediction of three-month prescription. The data contained in the next quarterly forecast of Global Economic Outlook. In particular, the document notes that the global economy continues to recover. The outlook revision is due to more vigorous economic growth in Japan and the BRIC (Brazil, Russia, India, China), noted in the I quarter of this year. However, forecasts for the growth of developed economies the U.S., Eurozone and the UK by the agency without changes. President of the Federal Reserve Bank of Atlanta Dennis Lockhart said that although the recovery of the U.S. economy, there remain serious risks, it should recover at a moderate pace, and unemployment will gradually decline. Nevertheless, the restoration of the American economy still lacks a solid base in connection with what authorities have to be careful, said Lockhart.

Ukrainian Globalist
2010-07-01 21:24, Economics.

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