USA: news from EU summit a little damped an ardor of bears
DAILY MARKET REVIEWS
Arne Treholt Vice-President of Business Development and Investments
On Thursday, June 28, the stock market of the United States finished the trading session in the negative territory in view of quite weak macroeconomic statistics, as well as on appeared information that losses of JP Morgan Chase can reach $9 billion.
Accordingly to the data published yesterday, the number of primary requests for unemployment benefits made 386 thousands whereas analysts expected 385 thousands. Besides, the previous value was reconsidered towards increase from 387 thousands to 392 thousands. Meanwhile, the index of business activity in the industry of FRB of Kansas was reduced in June from 17 points month earlier to 12 points, and GDP, according to final data, increased in the first quarter by 1,9 %, as expected, having coincided with the previous reading.
Towards the end of trading session the American indexes could restore a part of losses due to the news which have arrived from the EU summit, which begun yesterday in Brussels. So, it became known that for urgent measures for stimulation of economic growth and employment the European Union will mobilize about 120 billion euro ($149 billion) what the president of the European Union X. van Rompey officially declared during the press conference. According to him, credit possibilities of the European investment bank will be increased by 60 billion euro and other 60 billion euro will be collected at the expense of not used EU structural funds to which means will be added funds from the pilot program of the European bonds calculated on specific projects fewer than 5 billion.
Following the results of the trading session the indicator of "blue counters" the index of Dow Jones decreased by 0,196 % to value 12602,26 points, the index of the wide market S&P 500 left in a minus for 0,211 % to level 1329,04 points, and the index of the hi-tech companies Nasdaq reached level of 2849,49 points.
Oil prices are still pointing up. Brent is is traded on a level of 92.951$.
Copyright: United World Capital