The Month Begins with Losses on Wall Street
Wall Street opened on Monday morning in negative territory and the Dow Jones Industrial Average, its main index, closed 0.52% lower waiting for the publication of new economic indicators and the reopening of the Athens's Stock Exchange. Meanwhile, European markets finished mixed. The CAC 40 gained 1.47% and the DAX ended higher 1.19% while the FTSE 100 lost 0.11%. Asian markets finished lower today with shares in China leading the region. Falling energy prices and disappointing manufacturing data out of China are the main reasons for the behavior of Asian stocks.
After Five Weeks of Inactivity. The Athens Stock Exchange reopened on Monday after five weeks of being closed. The ASE Stock Index registered a fall of 16.23%. As expected, the biggest losses were in banking stocks, which in the first 45 minutes of trading they plunged nearly 30%. The reopening of the stock market is a step towards normalization. Further, the manufacturing purchasing managers’ index for Greece for July fell to 30.2 (the lowest level recorded in 16 years) from 46.9 in June. A level below 50 indicates contraction and the Eurozone measure stood at 52.4
Oil Prices with Sharp Corrections. Investors shorting oil have another day of gains as prices have continued to fall. The West Texas saw its biggest drop since March while in the case of Brent is the biggest drop since 2014. However, the production of the Organization of the Petroleum Exporting Countries (OPEC) does not yield in its production levels. Reuters reported on Friday that the cartel in July recorded its highest level of oil production since 1997.
Twitter Sinks More than 6%. On the first day of trade for August, shares of Twitter have tumbled to new post-IPO lows. Shares ended lower by $1.74 (5.6%) at $29.27. Shares came up almost instantly 11% in after -hours trading after reporting quarterly results but then fell sharply, due to fears that the company does not guarantee a stable growth of users.
Puerto Rico Goes into Default. The country has announced that it could only pay a portion of its debt. The Credit Rating Agency Moody's has considered this partial payment as a default.
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