U.S. Outlook trimmed, Wall Street slump ?

Nurul Qomariyah - detikFinance York - Wall Street stock index dropped more than 1% after debt-rating agencies lowered outlook for the United States as well as tight monetary policy implemented in China. 


"Because the U.S. has a relatively equal rank with 'AAA', what we consider is a very large budget deficits and rising government debt and because of the way to handle this is not clear to us, we revised the long-term ratings outlook from stable to negative," said a    statement from S & P. 
Standard & Poor's revised the outlook for U.S. debt rating to 'negative' due to poor country's budget projections. While China takes an additional monetary policy by raising the minimum reserve requirement (GWM).
Both policies were feared to worsen the global economic growth projections.
"The announcement gives effect to the market such as gas explosions in mines," said Gregori Volokhine, Meeschaert Capital Markets analyst was quoted as saying by the AFP on Tuesday (19/04/2011).
In trading Monday (4/18/2011), the Dow Jones closed down 140.24 points (1.14%) to the level 12201.59. The broader Standard & Poor's 500 index also fell 14.54 points (1.10%) to a level of 1305.14 and the Nasdaq fell 29.27 points (1.06%) to a level of 2735.38.
The trading volume is still low, with transactions on the New York Stock Exchange amounted to only 7.83 billion shares, below average last year which amounted to 8.47 billion shares.
Mitch Rubin, chief investment officer of Advisors RiverPark say, these financial statements turbulent season in the short term.
"The movement of the market will be driven by the financial statements and we have seen many mixed results. And there are a lot of disappointment about the financial statements of the bank," he said as quoted by Reuters. (Qom / Qom) source: detik.com 

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