Thursday, September 30, 2010

Dow Jones Industrial Average Review, 30/09/2010

The Dow Jones surged as much as 114 points following better-than expected economic data in weekly jobless claims of 453k (consensus: 460k), final 2Q 2010 GDP of 1.7% (consensus:1.6%) and September Chicago PMI of 60.4% (consensus: 60.4%). Nevertheless, selling pressures intensified amid heightened concerns on the European banks health following Moddy’s downgrade of Spain’s credit rating and concern of burgeoning deficit in Ireland as the government is preparing to take majority control of Allied Irish Bank and pump extra cash into Anglo Irish Bank, raising the cost of repairing the financial system to as much as 50 billion Euros or US$68billion.

For Wall Street, we expect a more range bound consolidation within the 10500-11000 points prior to the 3Q 2010 reporting season in mid October.

Daily Dow Jones indicate upside momentum fizzling amid weakening technical readings.
Source: MarketWatch

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