Decline of Chinese shares quotes prior to the US deals opening frightened the investors away from companies of raw material and energy sectors. The market participants striving to protect their investments put the downside influence on the US stock indexes on Monday.
Dow Jones Industrial Average lowered by 47,92 points or by 0,5% to 9496,28 points. Standard & Poor\'s 500 slided down by 8,31 or by 0,81% to 1020,62 points, and Nasdaq Composite index — by 19,71 points or by 0,97% to 2009,06 points. On Monday, the shares of raw material companies turned out to be under the pressure, as the further downward movement on the Chinese stock markets increased the investors concerns. Among Dow Jones Industrial Average index components Alcoa securities showed the price downturn by 45 cents or by 3,6% to 12,05 dollars. Caterpillar shares quotes declined by 1,40 dollar or by 3%, to 45,31 cents, and the Exxon Mobbil shares fell by 97 cents or by 1,4% to 69,15 dollars. Pressure on the oil giant securities effected the oil price reduction.
Worth noticing that DJIA where the company shares with big capitalization are dominating, showed less favourable dynamics than two indexes. This signals that during the session the traders were inclined to less risky investments. Taking into account that in August, which is the 5th month of positive closing, DJIA rose by 324,67 points or by 3,54%, some traders are calling for caution because of September beginning. In particular, they are citing to that the recent rally took place during the summertime with the low-key trading.
Moreover, despite the economic data improvement, there are still some investors doubting that the news are getting better to serve as a reason for such a large-scale advancement.
Regards,
Analyst: Vladimir Donin
