international rating company Moody's said yesterday that the U.S. deficit continues to expand, will lead the U.S. sovereign debt "Aaa" rating as a negative outlook time shortened. Moody's said the United States The Government has decided to extend the tax cuts, as well as the U.S. Congress could not deal with the issue of deficit reduction, the company increasingly uncertain willingness and ability to reduce debt.
the face of the growing size of the debt, the IMF said European economies will tighten the budget, Spain's largest. Europe needs a more comprehensive crisis management plan in order to avoid the crisis from spreading. For emerging market economies world pie network information , the IMF said India, China and Brazil and other emerging market economies deteriorating fiscal outlook than expected, especially Brazil.
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Despite Moody's huge debt in the United States issued a warning the same day the U.S. stock market was driven higher by strong corporate performance. the second consecutive day to close at 29 month highs, but analysts believe that U.S. stock market may be more difficult to achieve further rose
In contrast, Moody's said that all Aaa rated countries, the U.S. Treasury and government revenue ratio, the current up to 426%, Germany, France, the UK, more than twice is more than four times in Australia, Sweden and Denmark.
same day, the U.S. Labor Department announcement, as of January 22, when the weekly initial jobless claims increased by 51,000 to 45.4 million, much higher than market expectations the same time, the American Association of real estate brokers announcement, the ring of second-hand housing index for pending sales in December rose 2%. this data is also higher than the index ring was an increase of this ring is expected to drop 0.5% of the market in November of second-hand housing signed sales 3.5%
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day, the world's largest software maker, Microsoft said the company's second-quarter profit in the quarter than analysts expected, by the growth of enterprise customers, Office and server software to purchase, as well as a paragraph somatosensory game equipment sales increased boost.
GMT on the 28th, the U.S. Labor Department released data showed that U.S. jobless claims for the first time significantly more than expected last week, which means that the U.S. job market improves need to take time. worse yes, the international credit rating companies, Moody's, the same day issued a warning on the huge U.S. deficit, adding that may pose a threat to the country's "A" grade credit rating a day after Japan's sovereign credit rating has just been rating agencies lowered.
the day, the Dow Jones index closed rose to its highest closing level since June 19, 2008, 11989.83 points, or 0.04 percent, the Nasdaq composite index closed at 2755.28 pointsWorld Steel Pipe , or 0.58% S & P 500 index failed to stand 1300, but closed still touched the highest closing level since August 28, 2008 1299.54 points, or 0.22%, S & P 500 index has surged since August 27 last year more than 22%
despite mixed economic data, market attention is still focused on the poor employment data on the labor market the number of unemployed is up to the time since World War II, "BMO Capital Markets Michael Gregory, senior economist in Toronto, said, "for a long period of time, looking for work than in the past several Depression more difficult."
IMF recurrent red reduction Warning
Standard & Poor's on the 27th lowered Japan's sovereign credit rating lowered to AA-from AA, the company said persistent deflation and political strife weakened the strength of Japan to cut liabilities. < / p>
IMF also predicts that in 2011 the proportion of the world the pace of deficit reduction, or slower than expected, while the overall debt as a share of global gross domestic product (GDP) is expected to rise to more than 100%. In addition, the overheating of the debt crisis in Europe and some emerging economies may face economic growth will lead to fears that global economic growth prospects.
However, the Mazars Weiser, chief and senior portfolio strategist David Katz is expected due to the conflicting economic data, investors are not sure of the current economic trajectory, stock to maintain a tight range. He believes that the most important issue now is to jointly cope with high unemployment and boost the housing market.
2011 years, the deficit seems to will continue to affect the economic recovery in developed countries to get rid of the "cause" the face of uncertain economic prospects, analysts believe the U.S. stock market trend will show a narrow range of fluctuation on the 27th, the country's stock market earnings boosted by Microsoft and other companies, for the second consecutive day to close at 29 month high.
Japan rating was lowered after only one day, the United States "Triple A" grade credit rating suffered another threat.
Moody's in New York's senior credit officer, Stephen Hans said, although it is not currently consider taking a rating action, but the time frame action appears to have shortened the next two years as a U.S. government bond credit rating also increased the probability of a negative outlook Moody's said it expects the United States will launch a "constructive measures" to cut the budget deficit and a controlling interest in spending.
deficit drag on economic prospects
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, 28 days, the International Monetary Fund (IMF) said that if the U.S. government hope to achieve by 2013 to halve the deficit target, then it will be necessary to make significant adjustments to its fiscal policy The organization further pointed out that his commitment to reduce the budget deficit and debt levels, the United States and Japan in particular, need to explicitly adopt specific measures to enhance the credibility of policy adjustment.
According to Microsoft's announcement, in the second quarter net profit of $ 6.63 billion, or $ 0.77 per share and sales revenue growth of 4.9 percent, to $ 20 billion after analysts' profit and the expected mean value of the sales revenue of $ 0.68 per share and $ 19.1 billion by the brilliant performance driven by Microsoft on the 27th to close at $ 28.87, or 0.3%.
stocks to maintain the narrow range of fluctuation of
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