Economy
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Preopening, Wall Street tumbled Triggered European Debt
Preopening, Debt Fueled Wall Street plunged Europe. Shares in preopening trading Tuesday (4 / 5) fell as investors remained wary of European debt problems. Quoting the AP, investors met developments in recent days, buying shares in a day to then immediately sell it. This happens because of concerns over debt settlement Greece and optimism towards the domestic economic reports. Investors are also expecting a report from home sales and factory orders in the future are expected to show continuing improvements that could trigger economic recovery.
European markets also fell due to concerns about bailout package for U.S. $ 144 billion to Greece if will be approved by the 15 other EU members or not. Greek bailout costs may make it more difficult for the EU to save the country that suffered a fate similar to Greece. Euro weakens against the dollar because traders avoid the currency used by 16 European Union members, including Greece. Euro reached its lowest level in a year. Strengthening the dollar would cut profits of U.S. companies that depend heavily on foreign operations.
UK main index dragged down by BP PLC. Investors worried about the oil companies are facing costs of oil spills in the Gulf of Mexico. In preopening trading, the Dow Jones Industrial Average fell 72 points, or 0.7 percent to leveli 11 030. Standard & Poor's 500 index fell 9.30 points, or 0.8 percent to a level of 1189.30 while the Nasdaq 100 index fell 15 points, or 0.7 percent to 2012 levels.European markets also fell due to concerns about bailout package for U.S. $ 144 billion to Greece if will be approved by the 15 other EU members or not. Greek bailout costs may make it more difficult for the EU to save the country that suffered a fate similar to Greece. Euro weakens against the dollar because traders avoid the currency used by 16 European Union members, including Greece. Euro reached its lowest level in a year. Strengthening the dollar would cut profits of U.S. companies that depend heavily on foreign operations.
Commerce Department is expected to release data as of March decline in factory orders from a decrease in commercial aircraft orders. Economists surveyed by Thomson Reuters on average expect orders fell 0.1 percent in March. Excluding the volatile transportation sector, which probably rose 2.8 percent, the biggest since December 2007. The manufacturing sector has risen consistently in recent months, while enhancing confidence in economic recovery.
Meanwhile, bond prices rose Tuesday. Results on benchmark Treasury 10-year record, fell to 3.66% from 3.69% Monday. Dollar strengthened against other major currencies. Gold also rose, while oil fell. Overseas, the FTSE 100 fell 1.1 percent, Germany's DAX index fell 0.7 percent, and France's CAC-40 fell 1.9 percent.(inilah.com)
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