On the 4 June 2010, the Dow fell -324.06 (3.16%) to 9,931.22 Two reasons; (1) Nonfarm payrolls rose & the unemployment rate missed economists' expectation.
(2) “Any comparison with countries that have much higher credit defaultswap ratings than Hungary is unfortunate,” State Secretary Mihaly Varga told reporters today in Budapest.
Prime Minister Viktor Orban, who took power a week ago, sought permission for a wider budget deficit from the European Union and the International Monetary Fund, which led the 20 billion-euro ($24 billion) bailout for Hungary.
My analysis; (1) The economic numbers are always swing like the woman mood, in fact worst than the woman. Therefore, couldn't be bother much about it, it could be another set of encouraging numbers tomorrow.......
(2) The key words about the Hungarian...... DEFAULT and TOOK POWER A WEEK AGO.
A week old government, what to say? totally INEXPERIENCE.....
Talking about DEFAULT in the current european context......... It's precisely like mentioning about the word - AFFAIR under the situation that; a wife is suspicious about the husband.
FOCUS - Hungary is a small economy entity, about $150 billion.
Hence, I think the market is over-reacted towards the Hungary's Mihaly Varga statement.
The HK/Singapore markets should be opening low tomorrow morning. Take advantage of this oversold market with stringent risk monitoting.