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The Ongoing European Debt Crisis Shoots Down Stock Prices
The European debt contagion has struck the local stock. It has eventually spread across the Atlantic, and has sent the stock prices crashing down. Dan Greenhaus, chief global strategist associated with the brokerage firm, BTIG, said that the primary concern of all the global economic giants is to stabilize the euro market.
According to a fresh report, the debt of the European nations is snowballing even after several debt relief strategies were taken up by the Union. Executives at the helm of governance are spending sleepless nights because of the failure of their budgetary plans. The entire European continent is engulfed in political unrest and social anarchy. The news reported the dissolution of the Dutch Parliament and the election defeat of French President Nicolas Sarkozy to his counterpart Francois Hollande. Presidential candidate Mr. Hollande is regarded as a staunch critic of the austerity plans pursued by the two most prominent European leaders, French President Sarkozy and German Chancellor Angela Merkel.
It was imminent that a bigger economical setback was looming over the global financial markets following the reports of European debt and political crisis. The severity of this crisis was felt with a major loss in the index by Germany’s DAX, whose stocks fell to 3.4%, a record low in six weeks. It was followed by the drop in index of France’s CAC to 2.8%, which usurped the previous year’s profits.
NASDAQ’s points fell sharply to 30 points or it fell by 1% (2,970.45). Moreover, the index of Standard & Poor’s came down to 11.59 % or 0.8% (2,970.45). Seeing such a bad fiscal trend, the traders are scurrying for greener pastures. This means that they are moving their money to the treasury. This action has led the Treasury note see its price go upwards. As a direct consequence of this shift in trading behavior the Treasury’s yield came down to 1.94% from 1.96%.
In this economic downturn the global food major Kellogg Co. is compelled it to reduce it’s bottom-line. So, it’s quite natural that its stock’s price will fall by 6.1%. As the bourses closed for the day, stock market was abuzz with the Netflix announcing its first quarterly loss experienced in the last seven years, which came down by 13.6%. The price of crude oil of West Texas in New York came down to stand at $103.11 per barrel.
In terms of David Kelly, chief market strategist of J.P Morgan Funds, investors are seeking ways to churn out profits out of the debt crisis. This is because of rise of the stock prices during the first quarter of this fiscal year, which is evident by the 12% rise of S&P’s 500 index. In addition to this, he opines that there is a lack of energy amongst the investors that is lowering the price of stock and pushing-up the rate of bonds.
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3. The European debt contagion has struck the
local stock.
It has eventually spread across the Atlantic,
and has sent the stock prices crashing down.
www.ProfitableTradingTips.com
4. Dan Greenhaus, chief global strategist
associated with the brokerage firm, BTIG,
said that the primary concern of all the
global economic giants is to stabilize the
euro market.
www.ProfitableTradingTips.com
5. According to a fresh report, the debt of the
European nations is snowballing even after
several debt relief strategies were taken up
by the Union.
www.ProfitableTradingTips.com
6. Executives at the helm of governance are
spending sleepless nights because of the
failure of their budgetary plans.
The entire European continent is engulfed in
political unrest and social anarchy.
www.ProfitableTradingTips.com
7. The news reported the dissolution of the
Dutch Parliament and the election defeat of
French President Nicolas Sarkozy to his
counterpart Francois Hollande.
www.ProfitableTradingTips.com
8. Presidential candidate Mr. Hollande is
regarded as a staunch critic of the austerity
plans pursued by the two most prominent
European leaders, French President Sarkozy
and German Chancellor Angela Merkel.
www.ProfitableTradingTips.com
9. It was imminent that a bigger economical
setback was looming over the global
financial markets following the reports of
European debt and political crisis.
www.ProfitableTradingTips.com
10. The severity of this crisis was felt with a
major loss in the index by Germany’s DAX,
whose stocks fell to 3.4%, a record low in six
weeks.
www.ProfitableTradingTips.com
11. It was followed by the drop in index of France’s
CAC to 2.8%, which usurped the previous
year’s profits.
NASDAQ’s points fell sharply to 30 points or it
fell by 1% (2,970.45).
Moreover, the index of Standard & Poor’s came
down to 11.59 % or 0.8% (2,970.45).
www.ProfitableTradingTips.com
12. Seeing such a bad fiscal trend, the traders are
scurrying for greener pastures. This means
that they are moving their money to the
treasury.
This action has led the Treasury note see its
price go upwards.
www.ProfitableTradingTips.com
13. As a direct consequence of this shift in
trading behavior the Treasury’s yield came
down to 1.94% from 1.96%.
In this economic downturn the global food
major Kellogg Co. is compelled it to reduce
its bottom-line.
www.ProfitableTradingTips.com
14. So, it’s quite natural that its stock’s price will
fall by 6.1%.
As the bourses closed for the day, stock
market was abuzz with the Netflix
announcing its first quarterly loss experienced
in the last seven years, which came down by
13.6%.
www.ProfitableTradingTips.com
15. The price of crude oil of West Texas in New
York came down to stand at $103.11 per
barrel.
In terms of David Kelly, chief market
strategist of J.P Morgan Funds, investors are
seeking ways to churn out profits out of the
debt crisis.
www.ProfitableTradingTips.com
16. This is because of rise of the stock prices
during the first quarter of this fiscal year,
which is evident by the 12% rise of S&P’s 500
index.
In addition to this, he opines that there is a
lack of energy amongst the investors that is
lowering the price of stock and pushing-up
the rate of bonds.
www.ProfitableTradingTips.com
17. Following the news of European fiscal deficit,
the speculation has gained momentum that
Netherlands is on the verge of losing its elite
AAA credit status.
www.ProfitableTradingTips.com
18. The statistics released by the European
Union statistics office proved that all the
debt relief programs initiated by the
European leaders and their counterparts
across the globe could not prevent the
adverse effects of overall debt which rose to
87.2%.
www.ProfitableTradingTips.com
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