Greek bear and Weak Euro pulls US stocks down
The Dow Jones Industrial average fell about 230 points in afternoon trading and all the major index were down more than 2%. Meanwhile, interest rates fell sharply in the treasury market as investors sought the safety of US government debt.
IT IS just Greece or whole Europe! This doubt crashed the Thursday’s market. The fear of European debt crisis might engulf the major markets led to the fall of stocks.
The Dow Jones Industrial average fell about 230 points in afternoon trading and all the major index were down more than 2%. Meanwhile, interest rates fell sharply in the treasury market as investors sought the safety of US government debt.
Analysts said there was no big event to set off Thursday’s selling spree. Some are cautious about the rosy picture; some are worried about Greek effect. But at the bottom of all it is just a correction round.
The trickledown effect of debt crisis in Greece might hurt the major banks across the world. The inflation control measures and tight interest rate regime may further aggravate the problem. Market is worried about Chinese move to control the market, which will affect US as well.
The Euro managed to rise to $1, 2545 in early afternoon trading, a day after hitting $1.2146, a four year low. It clearly shows a declining confidence in the workability of the EU monetary union, and declining European market is showing it.
In mid-afternoon trading Dow fell 229.07 or 2.2 %, to 10, 214.25. The Dow had been down nearly 357 points. The S&P 500 fell 25.54, or 2.3 percent, to 1,089.51. The Nasdaq composite index fell 60.41, or 2.6 percent, to 2,237.96. At the New York Stock Exchange, only 174 stocks rose compared with 2,953 that fell. Volume came to a heavy 1.3 billion shares.
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