Aug 10
27
Dow crashes below crucial 10,000 level
International Market Report 27th August 2010
The Nikkei climbed 0.5% or 48.35 points to 8,954.55, climbing further away from a 16-month low that it hit on Wednesday. The Topix gained 0.6% to close at 816.22. The Dow shed 74 points to close at 9,985, on the other hand the Nasdaq lost 22 points to close at 2,118. The S&P 500 was also down 8 points at 1,047.
Yesterday, Greece’s government took a step toward offloading its stakes in ATEbank and Hellenic Postbank when it named Deutsche Bank, HSBC and Lazard as its advisers. In a statement it was said that the three investment banks would explore and assess the Greek state’s strategic options, then evaluate its holdings in the banking sector, so it can assess the consequences of such options. Between 2011 and 2013 Athens needs to raise at least €1bn (£817m) each year as a condition of its European Union bailout in May. In the next 3 years state-owned energy, infrastructure and utilities companies are also expected to be handed over to the private sector.
Yesterday, the Dow Jones closed below the psychologically-crucial 10,000 level as investors shrugged off better than expected US jobs figures to focus on an expected downgrade for US GDP today. The US blue chip index fell 0.7% to 9986.81 which was its lowest level since 6th July ahead of today’s GDP growth for Q2 which analysts are predicting could be almost halved from the preliminary forecast of 2.4% to just 1.4%. Today there are also fears of what Fed chairman Ben Bernanke’s speech on the economy will reveal.
Due for release today is the GBP Revised GDP q/q, CHF KOF Economic Barometer, USD Prelim GDOP q/q and the USD Fed Chairman Bernanke Speaks.
