Dow Jones Industrial have lost support suddenly and fears of the red zone

Dow Jones Industrial Average is under pressure again

In brief: DJIA continues to fall rapidly after the rally in early trades. Bulls no longer react to positive news.

The DJIA began to rally from the very start trading the U.S. stock market, but after crossing the equator Dow index abruptly began to lose purchased points. Dow Jones Industrial Average was at 9,719.10 points. Green zone Dow index added +32.62 points. At the same time, strong growth showed the European stock market. European share indexes have grown on the bidding results on Tuesday, July 6. The favorable impression on the investor made a comment regarding Australia’s central bank’s prospects of economic recovery.

Pan-European Stoxx Europe 600 index rose by 2.5% to 242.76 points, Britain’s FTSE 100 – has increased by 2,9% to 4965 points, Germany’s DAX – on 2,1% to 5941 points, the French CAC-40 – 2 , 7% to 3423 points. Reserve Bank of Australia kept its interest rate at the same level of 4,5% the second month in a row against the cooling retail and real estate market. It was also given to understand that the resumption of growth in the interest rate will depend on the rate of inflation. The normalization rate was completed and any subsequent increase it will be a sign of tightening policy. In a statement the RBA noted that the current monetary policy is correct. “Growth in the CPI is likely to exceed 3% in the short term. Interest on loans are about average levels of the last decade. The growth of production over the next year will be approximately the trend rates. At the same time, commodity prices, which has the greatest importance for Australia, are at very high levels. Nevertheless, “there are signs that growth in China is becoming more moderate,” said Bank of the country. The situation in the U.S. labor market is improving slowly. On the financial markets there is some tension, but not the same as at the end of 2008,” -reports the Bank.

BP shares have risen in price by 3,7%, after it denied reports about plans to issue shares. The British Government is preparing a contingency plan for a possible collapse of world oil company BP due to an accident in the Gulf of Mexico, writes Times. The cost of British oil companies related to the accident drilling platform Deepwater Horizon, increased to $ 3.12 billion in the costs included costs for eliminating leakage from the emergency wells, collect spilled oil, as well as payments for lawsuits, and reimbursement of the U.S. federal government for the accident. Car company Porsche said today that Matthias Mueller, manager of Volkswagen AG, will assume the post of executive director this year. This step should be a new step towards the merger of two manufacturers. The biggest European automakers Mueller is responsible for planning and range of the company. The current CEO Porsche Michael Macht will leave his post on 1 October and will go to work at VW. The Committee on Legal Affairs European Parliament approved the agreement between the EU and the U.S. on access to U.S. intelligence officials bank records of Europeans. The document will enter into force after ratification by MEP. It is expected that at a meeting on Thursday, July 8, the European Parliament ratified the treaty. According to the document, the American intelligence agencies fighting terrorism, have access to the international banking system, exchange information and make payments by SWIFT will be able to get information about international money transfers Europeans. These will give you the name, account number and address of the sender, the recipient’s name and the amount of transfer. Industrialized countries led by the U.S. and Britain start to the most aggressive tightening fiscal policy in more than four decades, since the governments want to reduce debt without stifling economic growth. Rich countries are reducing their primary deficit excluding interest payments on the 1,6 of a percentage point next year, which would be the highest level since the time when the Organization for Economic Cooperation and Development began record-keeping such data in 1970, according to Economists JPMorgan Chase. Budget cuts will cost 0.9% growth in 2011. Restoring confidence in the European economy is a key factor for strengthening the economic recovery and opens the way for sustainable growth, said EU Commissioner for Economy and Finance Olli Rehn. Speaking on Monday at a meeting of the European Parliament in Strasbourg, Rehn said that Europe should act “on all fronts – to provide financial stability to pursue fiscal consolidation that is conducive to economic growth, reforming financial regulation, and promote structural reforms to comply with budgetary rules.

Ukrainian Globalist
2010-07-06 19:36, Economics.

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