Hong Kong (PRWEB) November 29, 2011
Early morning activity on the Dow is up almost 3%; both the S&P 500 and NASDAQ indexes are above 3% compared to Friday’s close.
Part of today’s upward bounce in stock and euro currency values was the news that the Italian Senate approved economic reforms intended to prevent a duplication of the measures undertaken by the EU to stabilize Greece.
Such measures, if required, would be catastrophic for the EU. Italy’s economy is number three in the Euro zone number eight in the world, which makes it far too large for a Greek style bailout.
The Dollar has declined as investors seemed willing to tolerate additional risk by moving funds back into the equities markets. The Euro has gained on the Dollar. Early New York session Forex currency exchange trading has the euro close to $1.34, almost 200 pips above Friday’s close.
Financial markets often display this type of price activity when a downward trend that tests long term lows fails to establish a new low point. Bargain seeking buyers rush into the markets hoping to make rapid profits from dramatic reversals. Others who caught the trend on the way down cover short positions with offsetting buy orders that contribute to a rise in prices.
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