The Dow Jones reached today the incredible low, just under 10000, the Dow Jones average wasn’t this low since four months. The main cause of this ever so low value is the drop of euro.
Dow Jones opened in the morning with a high value of 135 points but dropped down about 69 points in the closing, this is the 8 drop since 10 days for Dow.
It appears that investors are frightened by the heavy debt loads in the Europeans segments, probably fearing that this debt loads will spread to other countries too in the region. This fear could explain the heavy sell-off which occurred today on Dow.
The situation was getting even worst at the end of the trading day, since China started to review its government holdings in the European region because of this financial crisis in the euro zone.
The loose of confidence in the euro shows the loose of confidence in the European countries to be able to deal properly with their debt problems.
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