Wednesday, September 21, 2011

Dow Jones Ends Flat After Rising As Much As 149 Points

Wall Street Recap: Dow Jones ends flat after rising as much as 149 points
Tracking strong Europe markets gains (on optimism that Greece will avoid a default), the Dow surged as much as 149 points intraday but ended only 7.7 points higher after the Troika (EU, ECB and IMF) said it will only make a return visit to Athens in October in an attempt to complete their review of the financial situation in Greece. Moreover, investors remained cautious, pending the outcome of the 2-day FOMC meeting today.

Sentiment was also dampened by IMF downgrading its outlook for global economic growth, saying the repercussions could be severe should Europe not succeed in containing its debt troubles or if U.S. lawmakers fail to reach agreement on a fiscal plan.

IMF said the world economy will expand 4% in 2011 and 2012, compared with June forecasts of 4.3% in 2011 and 4.5% in 2012. The U.S. growth projection for 2011 was lowered to 1.5% in 2011 from earlier projection of 2.5%.


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