On Monday, the American stock market had another losing trading session, and closed with a substantial fall in the major indices. The Dow Jones Industrial Average fell by 1,02% to the level of 16245,87 points, Standard & Poor's 500 lost 1,08% and was closed on the level of 1845,04 points, and the index of high-tech companies, Nasdaq Composite, was down by 1,16% and reached the level of 4079,75 points.
For a long time now, analysts have been discussing the correction in the American stock market. This time, the push factor could be the upcoming reporting season, which will start in America at the end of this week. According to predictions and different estimates, reporting for the first quarter will be weaker than for the last, and in general the reporting season will be the weakest in the past two years.
The point is that we have witnessed for more than one quarter, a fall in revenue growth of the companies, but U.S. indices have continued to show growth and are updating annual and historical highs. Now, it is clearly visible that the discrepancy among the yield growth of the companies and the dynamics of the growth of the stock market indices, have reached unrealistically large quantities. So, in general, the correction in the American stock market is obviously required, because to inflate the bubble continuously is impossible.
The European trading session was also very disappointing and indices finished the day in the red zone. The British index, FTSE 100, lost 1,1%, France's CAC 40 decreased by 1,1% and Germany's DAX went down by 1,9%. The Regional indicator STXE 600, in turn, decreased by 1,2% and was closed on the level of 334,96 points. Today’s trading session is also going towards the negative territory - DAX is losing 0,73%, FTSE 100 is decreasing by 0,72% and CAC 40 is falling for 0,60% currently.
Prices of commodities are recovering slightly from the levels reached yesterday, Brent and WTI are increasing by 0,47% and 0,67% and are traded on prices of $106,31 and $100,45 per barrel. Gold and silver are up by 1,04% and 0,90%, traded on prices of $1311,83 and $20,09 perr troy ounce.
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