Dow Jones YTD Greece Collapse QE3 Time for Some More Stimulus?
Dow Jones YTD Greece Collapse QE3 Time for Some More Stimulus? In this Dow Jones Index Update we will go over critical support and resistance levels on the Dow Jones Industrial Average Index. Markets have entered "bear" territory falling over 10% off their high.
The Dow Jones Industrial Average Index has fallen 1,241.03 points from the 52 week high of 13,391.63 to close at 12,118.57. The EU Preparing $620B Rescue Fund. The European Union is targeting July 9 as the start date for its permanent euro-area rescue fund, the 500 billion-euro ($620 billion) European Stability Mechanism, an EU official said.
Parliaments across the 17-nation currency union must ratify the fund before it becomes available to counter the financial crisis spawned in Greece. Until it receives 90 percent of its expected capital allotment, officials must turn to the temporary European Financial Stability Facility, a 440 billion-euro fund with 240 billion euros available.
June 1 (Bloomberg) -- Todd Schoenberger, managing principal at BlackBay Group, John Silvia, chief economist at Wells Fargo Securities LLC, and Matthew McLennan, portfolio manager at First Eagle Funds, discuss the European debt crisis and investment strategy. They speak with Betty Liu and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)
The start date depends mainly on the outcome in Germany, where lawmakers may vote as late as the first week of July. Considering the national approvals required, euro officials hope the July 9 target date will hold, said the official, who declined to be named because the planning isn't public.
The ESM is the centerpiece of Europe's $1 trillion firewall to stave off financial contagion from the debt crisis that has wreaked havoc on markets and pushed Greece, Portugal and Ireland to seek bailouts. The ESM represents the euro area's capacity for further aid programs, since the rest of the firewall is made up of 300 billion euros already committed to the rescue effort.
The euro has dropped 6.8 percent against the dollar over the past two months, nearing a two-year low yesterday as investors grow concerned the currency area may splinter. The euro closed at $1.2415 in Brussels yesterday, up from an earlier low of $1.2288.
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