Risk evasion continued Tuesday allowing the U.S. dollar and Japanese Yen to maintain their positions against the background of lack of economic reports planned earlier. First of all, it was caused by the expansion of spreads of Irish and Italian bonds giving rise to anxiety towards some EU member states. Even Obama’s promise to cut business activity tax by $ 200 bln. couldn’t abate investors’ fears of taking risks.
France is in disarray. According to opinion polls, the popularity of French President – Nicolas Sarkozy, for many decades, didn’t not fell so low. Recently resigned two ministers and parliamentary passions abound with light hand media – series of scandals added to the charges a suspect in the corruption minister of abuse of office in obtaining funds for Sarkozy’s presidential campaign.
How seriously should be considered the threat of the new reecession and the second wave of crisis? The fact that the pace of economic recovery will begin to decline, many analysts have repeatedly predicted, therefore, in a sense, the events of recent months in the stock markets should not surprise anyone. Markets with their usual harshness and inconsistency warn that lies ahead. Last summer, they signal the approach of a tipping point and the beginning of recovery. Now they predict a short pause in growth. As already noted, this often happens during the recovery period: the positive dynamics slows down, the activity also decreases for a while, then to resume with renewed vigor.
The DJIA ceases to grow steadily after the results of stress tests. Calling the results of stress tests bad we can not, but the Dow Jones Industrial Average lost 0.10% growth. The DJIA is a mark of 10,400.02, gaining 77.72 points (0.75%). So, seven European banks have not been stress-tests conducted to confirm the stability of the banking system of the EU.
The Dow Jones Industrial Average along with the other leading U.S. indexes continue to demonstrate positive tendency during the first half of today’s trading at the major U.S. stocks. The investors are apparently relying on the financial results of the U.S. companies, ignoring even the decrease of Portugal’s rating by the Moody’s agency.
Dow Jones Industrial Average has prevented all attempts to impose a bear trend. Dow index is at around 9,918.45 points, having won 174.83 points (1.79%) for the last day. DJIA rising steadily against the background of recent statements by Chinese officials and the successful closing of European stock exchanges. European stocks have grown up to the auction on Wednesday 7 July. Shares of banks were on the rise in anticipation of information on methods for stress tests. BP shares have risen in price thanks to speculation of a sale of the share of Arab investors. Pan-European Stoxx Europe 600 index rose by 1.3% to 246.06 points, Britain’s FTSE 100 – has increased by 1% to 5015 points, Germany’s DAX – on 0,8% to 5993 points, the French CAC-40 – for 1,7 % to 3483 points.
Another great deal hadn’t finished. The Portuguese Government has used its veto to block the proposal, a Spanish company Telefonica in the amount of 7.15 billion euros ($ 8.72 billion) to buy a stake in Portugal Telecom the largest mobile operator in Brazil Brasilcel.
Dow Jones Industrial Average started trading with strong growth, but at the end of the trading session began to fall rapidly. The level of support for the Dow Jones dropped significantly. Customers started to close short positions and they themselves have broken the positive trend. Bulls took the opportunity and started Dow Jones Industrial Average in the red zone. Trading in the U.S. on Monday June 21 ended lower indices. The initial euphoria associated with the decision of China to weaken the control over the yuan, had vanished. Investors have come to the conclusion that the change in the course of the Chinese currency would take time.
The exchange rate depends not on the euro in Greece or Hungary, and from one of the countries – the founders of the euro area … The future of the euro looks unreal. Greece went into the background, now it is just “the opening act.” All eyes are on Spain, a country that is destined to have a significant impact on the future of the euro, as well as to determine whether a new system of management control over the budgets of the Eurozone countries. It will be a crisis in Spain – the situation will change for the better in the world.
India has become the flagship for the bulls on gold. Gold prices in India rose to a peak this morning. On Friday, June 18 quotes for gold reached a new record high against the withdrawal of investors in asset-seekers in light of overall uncertainty in other markets. As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures rose by 9.60, or 0.8%, to 1258.30 dollars per troy ounce, quotes, silver futures rose 41 cents, or 2.2%, to 19.18 dollars per ounce. The price of gold on the spot market in the U.S. amounted to U.S. $ 1256.00 per troy ounce (+9.30 dollar).