Tuesday, May 12, 2015

On Wall Street dips after another sell-off in bond markets – Onet.pl

At the close the Dow Jones Industrial fell by 0.20 per cent., To 18068.23 points.

S & amp; P 500 lost 0.29 percent. and amounted to 2,099.12 points.

Nasdaq Comp. It fell by 0.35 per cent. and amounted to 4,976.19 points.

On Wall Street indexes fell in the wake of increases in US bond yields, which neared the highest level in 5 months. These in turn followed the trend of government securities in Europe and Japan, as well as hardwood floors in western Europe, where 16 out of 18 reported declines in stock markets indices. Among them are German DAX, CAC 40 fancuski and the Spanish IBEX 35.

The declines occurred despite the fact that the finance ministers of euro zone countries said on Monday that noted the progress in the negotiations with Greece ws. financial assistance to the country. They stressed, however, that more time is needed to reach a comprehensive agreement and give the green light for the payment of support.

The dynamics of the stock market is back to trend observed several days ago, when there was strong depreciation in the debt markets in Europe and the USA. In the second part of last week, however, sentiment improved and yields have stabilized, inter alia after Friday, in line with expectations, a report from the US labor market

In the opinion of Goldman Sachs excessive investor expectations as to put in place by the ECB quantitative easing program has led European bond yields to extremely low levels. Currently, they are remeasured and entail increases yields in other markets.

The S & amp; P dismissed from historically high result to which on Friday he lacked just two points.

“When indexes are approaching to the highest historical value better information is needed than what we now have, “- said Matt Maley Miller Tabak & amp; Co. in Newton.

“The increase in rentowaności not the result of better economic or fundamental reasons. European bonds again shot , American followed their example, and now shares move down. It’s rather the lack of positive information has an influence than the accumulation of bad news “- he added.

The improvement of the situation on the global bond market is not conducive to increased supply. In Japan, the ten-year Treasuries attracted the least investors in the past six years. Auctions conducted also the Dutch and Germans, and on Wednesday the issue of the value of 7 billion euros planned in Italy.

Among the He aroused the interest of companies Verizon Communications Inc., which agreed to buy the Internet company AOL Inc. for $ 4.4 billion. With the transaction telecommunications provider will be able to use the new advertising technology that allows to obtain greater profits from newly introduced services of mobile video sharing. After the announcement of the acquisition by AOL, Verizon shares rose by 18 percent.

Gap shares have lost because the retailer announced that a strong dollar hitting the revenues of the company.

On Tuesday the National Federation of Independent Business optimism index published among small businesses in the US for April, which amounted to 96.9 points. against expected 96.0 pts.

On Wednesday, the reading will be given data on retail sales for April. It is expected to rise by 0.2 percent. mom.

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