Increasingly tense becomes the markets for elections in Greece. Growing fears that the vote on Sunday, voters may vote for the party that threatens to lift the state of the euro zone. Two rating agencies have already calculated the possible consequences in its assessment of Spain, which is by far the most affected by the obstinacy of the Greeks. Strada and the united currency appreciated, and thus impedes the competitiveness of European exports.
Investors on Wall Street last night sold out and left to sink indexes not only because of what is happening in Europe, but also because data on the American economy that were not very positive, especially in the “retail”, which in May fell 0.2%. The largest decreases were reported shares of tech companies.
Dow Jones Industrial Average fell 0.63 percent to 12,496 points.
S & P 500 Index fell 0.70 percent to 1314 points.
NASDAQ Composite Index lost 0.86 percent to 2818 points.
Asian markets were also in negative territory. Investors are worried about the outcome of elections in Greece, scheduled for this Sunday, and of the European economy as a whole because it is one of the main consumers of goods produced in Asia.
Nikkei 225 fell 0.12% to 8577 points.
Hang Seng Index sank by 0.56% to 18,920 points.
CSI 300 Index rose by 0.08% to 2582 points.
American session ended with a fall of oil futures for light as U.S. crude for delivery in July dropped to $ 82.62 a barrel. In Asian trading lightest American oil rising 39 cents to $ 83.01 a barrel. Brent is traded against $ 96.84 a barrel, which rises by 0.70%. Impact of trade data proved oil reserves in the U.S. fell by 200 thousand barrels last week.
The dollar fell against the euro and it is close to the limit of $ 1.26, but has not yet been reached. Peak rates in trade are $ 1.2587 and at that time the exchange rate is $ 1.2576. What influence in trade was the result of the Spanish bond auctions. The interest rate on 10-year government bonds jumped to 6.74 percent, which is the highest yield demanded by investors ever. Italian bonds are also traded at higher yields.
Important news on which traders pay attention this morning, comes from Germany, where Deutsche Bank lowered its forecast for growth in China. Expectations are that this year the Asian country’s economy will grow by 7.9%. The previous forecast was for growth of 8.2%, and the reasons for this major revision is lower activity in the industry, reported in the second quarter and the slowdown of U.S. economy.
Today in the United States are waiting for important data for the consumer price index, which measures inflation as well as applications for new dole. The Fed will also provide information on monetary aggregates.