Dow Jones Industrial finishes the week with a real shock for investors

Dow Jones Industrial Average falls lower and lower

In brief: DJIA goes into the red zone. Banking sector began to fall first, then decreased, and other blue chips.

U.S. Stock Market has been the victim of new repression. Old World started a negative trend, and the Dow Jones supported bearish mood. Dow Jones Industrial Average fell almost -225 points or -2.16%. Dow index is now 10.135. Key share indexes in Germany that were in the beginning of the session in the Green Zone unable to resist the bears pressure and closed in the negative territory. The first blow came from the macroeconomic statistics, according to which the trade deficit in the euro area in May totaled 3.4 billion euros, while analysts had expected the trade surplus will decline from 1.8 billion euros the previous month to 1.5 billion euros.

Not exactly reassuring statements were Bank of America, Citigroup and General Electric – despite the fact that earnings per share exceeded the average market expectations, financial results of the two banks would have been worse than the data of the previous year, and sales of all three members of the U.S. stock market has not reached up to the expectations of most Analysts and decreased compared to 2009. Additional data added to the pessimism index of consumer confidence in the University of Michigan in July. According to preliminary estimates, the indicator has fallen from 76 points in June to 66.5 points, while the expected decline to 74.5 points. As a result of trading a key indicator of the German DAX stock market closed in a minus on 1,77% to about 6 040.27 points, while the index TecDAX Performance dropped to 1,14% to 775 points. Representatives of the energy sector in Germany have been among the leaders of the fall after the government proposed to impose a tax on nuclear power plants. As a result, quotes the world’s largest utility company E. ON and its rival RWE dropped to 4,91% and 4,32% respectively. The disappointment of investors associated with the reporting Bank of America and Citigroup, led to the depreciation of securities German creditors Deutsche Bank and Commerzbank, have departed during the session at 3.05% and 2.41% respectively.

Ukrainian Globalist
2010-07-16 17:58, Economics.

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