Dow Jones Industrial Average is gaining momentum of growth. The level of support Dow Jones Industrial Average by the bears is growing with each passing minute. The main factor of support for the Dow index is news from the European banking sector:
U.S. business TV channel CNBC made a rating of most heavily indebted countries. Experts estimated the total debt relative to GDP of the country. The top twenty of the most “heavily indebted” countries was 17 countries in Europe. The USA took only 20th place. The top rating of debtors took Ireland. Its total external debt (both private entities and state) at the end of 2009 totaled 2.32 trillion dollars. This is more than 13 times the volume of island economies (more precisely, at 1312 percent). In the second place reveals Britain. Its total debt (9.15 trillion U.S. dollars) of 426 percent of GDP.
The number of holders of fortunes in the world reached 11.2 million. According to analysts in the annual report of the New York-based Boston Consulting Group, over the past year a list of the rich has increased by 14%. It is estimated that the global economy is under the control of the amount of 111 trillion 500 billion dollars. Thus, the world capital of its size left in the pre-crisis level of 2007.
Currency exchange rates today today are unstable against bad news from Asia. For several months, there is lowering of the euro and analysts say its oversold. The overall negative background for the euro area, hampering the growth of buyers and the euro while speaking prematurely.
The overall negative trend in global stock markets remain very high. Dow Jones Industrial Average was influenced by a set of data on statistics from Australia, Europe and Asia. Good news, unfortunately, was much less than the bad. Another reason for the collapse of Dow Jones Industrial Average started the bad news from the automotive sector, the United States. Meanwhile, the unexpected news that can turn the market upside came from Switzerland.
Economic news in Europe remain quite negative. These statistics do not add optimism. Greece: in May, the index of business activity in industry fell to a minimum with the April 2009 level of 41.8 points from 43.6 points in April.
Swiss lawmakers are going to deal with two major banks of this country and to introduce strict regulation of the financial sphere. During the 3-week parliamentary session, which began on May 31 this year, lawmakers are likely to approve the transfer of information to tax authorities of the U.S. thousands of accounts of Americans in UBS AG.
Dow Jones Industrial Average had been attempting to escape from the negative zone. An attempt was quite successful. Tuesday, June 1, the major indexes of U.S. stock market in the first half of the trades showed predominantly negative trend. Several strengthen its position was only indicator Dow Jones Industrial Average. News from Europe and China are today the main source of the negative, while the U.S. macroeconomic performance exceeded the expectations of analysts.
The exchange rate euro starts to give hope bulls. European currency showed a growth on Thursday and is now entrenched rate higher than $ 1.23. Week for the euro’s turned out quite volatile. Australian dollar throughout the session on Thursday showed growth in relation to the dollar. The range of trades for the pair AUD / USD 0.82-0.8528. The current rate of 0.8515.
Forecast Trading on the stock market is pretty gloomy today. On Thursday, major stock indexes opened with a significant increase by providing long-awaited support for risky currencies. The reason for this was the People’s Bank of China, in an official statement that was contradicted by information about the possible change in the proportion of foreign exchange reserves, in particular, reducing the proportion of investments in Eurobonds. Recall that a day earlier rumors about the restructuring of the currency diversification of the Central Bank of China was lowered to the level of 1.2150 euros.