The DJIA can collapse as the results of banks’ stress tests published today

Stress tests will affect the markets, the Dow Jones Industrial Average even

In brief: Investors fear the negative results of stress tests in Europe. Dow Jones Industrial Average may return to the red zone.

Stress tests do not bode well for the stock market. Dow Jones Industrial Average remains in the green zone at around 10,354.46 points, gaining +32.16 (0.31%). Analysts believe that stress-tests could plunge the Dow Jones Industrial Average and other markets at the bottom. In the first half of the trading session the U.S. market traded in a small minus. Doubts about the results of stress tests European bank outweigh the number of positive corporate reporting.

At the moment we know that seven of the 91 banks have not passed the stress test: constant capital adequacy ratio could not exceed the minimum 6% threshold. Among the “rotten apples” were five Spanish banks, one Greek and German. Meanwhile, Swiss regulators conducted their stress tests, which, according to them, twice as more severe than European. Most American indexes was not slow to respond, and descended into the red zone. Indicator of blue chips, the Dow rose 0.07% to the value of 10328 points, the index of wide market S & P 500 dropped 0.08% and traded at 1,092.78 points, and Nasdaq index of technology companies retreated 0.3% to a mark 2,239.63 points in early trading today.

Ukrainian Globalist
2010-07-23 17:24, Economics.

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