Dmitri Lysenko
The eurozone crisis and higher commodity prices have had a more considerable impact on stock markets than industrial growth. On Wednesday US stocks declined, thus showing mass sales at the end of the day.
This morning European stocks started the trading session with a slight decline amid Fitch’s statement about the impact the eurozone crisis has on the US banking sector. According to the rating agency, if there is no efficient solution to the eurozone crisis in the near future, Fitch may well lower the forecast for the US banking system.
Moody’s cut the ratings of several German state-owned banks as the probability of getting external support is low. Jean-Claude Juncker, President of the Euro Group, expressed his concerns over Germany’s public debt.
According to the Euro Commission expects Germany’s public debt to reach 81,7% of the country’s GDP in 2011 and to decline down to 81.2% in 2012. For the sake of comparison, Spain ’s debt is estimated at 69,6% and 73,8% of the GDP in 2011 and 2012 correspondingly.
The Bank of Japan is also concerned about the impact of the eurozone crisis, while the Bank of England has lowered its economic forecast.
On Wednesday Dow Jones declined by 1,58% down to 11.905,59 , S&P 500 lost 1,66%, going down to 1.236,91, Nasdaq Composite shrunk by 1,73% down to 2.639,61.
The Dell stock chart showed a 1.5% decline after the company’s statement about a slowdown in sales until the end of 2011. Abercrombie & Fitch Co. stocks also lost 12% on a poor income report.
Dmitri Lysenko
