Stepping down from position of Hosni Mubarak, Egypt’s President, relieved investors fears of violence that is about to spread in countries that supply oil. This made not penny stock charts to rise. In the day Mubarak stayed in his position, the average of Dow Jones Industrial nearly down to 50 points nearly up 44.
Anti- government demonstration that lasted for around three weeks brought all these fears. The concern of traders is that unrest may spread to Saudi Arabia.
Peter Cardillo, chief economist of Avalon Partners said “the market is relieved that the unrest in Egypt has come to an end with Mubarak having relinquished power”.
U.S. economic news gathered from customers’ emotions for the current economic situations encouraged Mubarak resignation noted by Cardillo. Consumer sentiment index of University of Michigan rose 0.9 from January to February. The economists believed that consumer confidence will continue to rise with employment rate increases and finances improve.
The Dow rose 0.4 percent, the highest close since June 2008. It gained 1.5 percent for the week. The Standard & Poor’s 500 index rose to 1.4 percent for the week while Nasdaq composite index rose to 1.4 percent. Rise of bond prices is also notable. People are buying Treasury for safety betting when there is political turmoil abroad. As for investors, they were reassured with the developments in Egypt. These are manifestations of the rise on stock charts.
Egypt plays a significant role in oil industry since they have the control of Suez Canal which is a main route for tankers and cargo ships that brings oil.
According to Wael Ziada, head of Egypt research at EFG- Hermes, issue will still be up for the coming months about country’s stability and “how their military will be ruling”.
Tags: Hosni Mubarak, stock charts, featured, Pictures, Egypt
