Dow Jones wiped their initial gains
U.S. markets erased its gains since the beginning of the session, which had resulted from a slower than expected slowdown in the U.S. economy. Shares, however, continue to be traded on the green territory.
Once at the beginning of the session, Dow Jones industrial index reached levels similar to 9250 points benchmark lost over 200 points and currently listed on 9 048 points. So from the beginning of today’s session, the index had increased by about 1 percent.
Similar is the situation with the other two benchmark. The broad S&P index is now up to 1.3 percent by (12 points) to 942 points. In the first hours of trade in the U.S., he reached 963 points.
Nasdaq increased by 1.37 percent (22.73 points) and last quoted at a level of 1 679 points.
Today’s rise in the U.S. comes against a backdrop of the rise in almost all markets in Europe. The index of the largest European economy - German DAX rose by 1.26 percent and close at a level of 4 869 points. The British FTSE 100 added 1.16 percent to 4 291 points.
Most impressive was the growth of certain markets of Central and Eastern Europe. Czech PX index added 9.17 percent and ended trade at over 864 points. The Russian benchmark RTS added goals 17.8 percent by close of today’s session 758.71 points.
State economy with negative growth expectations but more pessimistic
U.S. economy marked negative growth in the third quarter of this year, which was the strongest sign so far that the financial crisis is carried in the real sector. This is the biggest decline in the economy from 2001 onwards.
According to the trade ministry GDP ratio fell by 0.3 percent annually during the third quarter. The decrease was especially jarring because of the previous three months the U.S. economy registered growth of 2.8 percent.
However contraction of the economy was less than analysts expected. According consensual forecast of economists, asked by Bloomberg, the economy should shrink by 0.5 percent.
The main reason for the decline in GDP is consumer spending which declined by 3.1 percent annually during the quarter. This is the biggest drop in consumption in the U.S. from 1980 onwards. Economists forecast a moderate decline of 2.4 percent. Sales of current products are the largest decline.
Business investment in equipment and housing construction also significantly reduced.
What balance declines, was a small trade deficit in recent months and a minor decline in stocks.
Less than expected decline in GDP affect positive U.S. futures, which were already registered increases. After the news on Dow Jones futures increased by 3.57 per cent (316 points) to 9 170 points. Those on the S&P 500 and Nasdaq rose so far with 3.07 percent and 2.78 percent.
The dollar also rose after news of state GDP. At present, cross EUR / USD is traded to 1.2976. A little earlier today the couple was 1.3213 dollars to euros.
U.S. shares erased their initial gains. The outlook for long-term credit rating of Russia is “negative” and Gold-currency reserves of Russia decreased by 50 billion dollars Red start of the month for Asian markets High jump in the markets in the U.S. with substantial growth Exchanges in Asia red again. New bankruptcy among Japanese companies in construction sector and lower ratings representatives of regional economy U.S. shares of the green, S&P 500 by 10 percent weekly rise Fifth consecutive decline for exchanges in Asia Mass panic scope and exchanges in Eastern Europe The data on employment pressed U.S. state indices, the serial drama data on the labor market in the U.S. Price of oil will not stop - marks a record after record Consecutive decline in U.S. stock, S&P 500 also enters in Bear Market Exchanges in Romania, Austria, Iceland and Ukraine stopped trading Another bank failure in U.S. The Bank Silver State closed its banking business 2008 - year of the bear market, world drop in economic growth The price of oil to a record for the last 17 years fall Dynamic week of oil market Rescue plan for the economy of Australia The euro fell against the U.S. dollar. Avoid the currencies set a high income under pressure Australia with the weak economic growth of eight years Auctions of stock and commodity markets have supported gold Bernanke: Inflation will be reduced Middle East oil fell to 122.10 dollars for a barrel Google disappoints the market despite the 35% growth in profits for quarter Inflation in Europe at lower level than nine months. Europe is in recession officially Another 62 thousand Americans without job in June, unemployment was 5.5 percent Oil ended the week with a drop of over 11 percent Shares of the week - storms Wells Fargo & Co. The euro board to new peaks New tumbled in sales of cars in Europe Hong Kong creates a market for servicing China Oil remained at low levels to the limit of 100 dollars The quality of loans in Eastern Europe deteriorate Merrill Lynch strongly disappointed investors off assets for $ 9.4 billion dollars Bought Subdivisions and of Lehman in Europe and the Middle East The best (and cheapest) funds around G-20 will decide on coordinated stimulate the world economy Financial crisis hit and telecom sector McCann against Obama - how will affect the economy The Federal Reserve reduced the basic rate Tips for growth in economy Strong data on the labour market in Germany Credit markets ease slightly Bank-to-bank lending eases WTO scraps plan for trade talks International Monetary Fund: The financial crisis has not yet been completed, real estate prices continue to fall 1st time ever: 10-year yield dips below 3% Expect to 30% decline in housing prices in Spain Unexpected rise in Swedish retail Woolworths store closures begin ‘Huge year for natural disasters’ World Bank gives USD 100 billion to developing marketsTags: Business, Dow Jones, economy, housing, investment, Markets, NASDAQ, shares
