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May 25, 2010 - The anxiety caused on investors by the uncertainty of the Greece economy and last Thursday’s Euro sharp decline against the Dollar has shaken the market.

The Dow Jones Industrial Average, led by industrial stocks, slid down by 22.82 points (0.23%) and dropped to $10,043.75 points. Standard & Poor’s 500 rose by 0.38 points (0.4%) to 2,210.95 points. Nasdaq skidded by 2.60 points (0.12%) to 1,074.03.

The German government issued the ban the other day on naked short selling of the stocks of the country’s10 most important financial institutions. The ban took effect May 19 and will end on March 31, 2011.

In short selling, investors borrow stocks with the aim of selling them, then buying them back at a lower price for profit. In naked short selling, investors sell the stocks without borrowing them first.

The announcement of the ban the other day drew immediate reaction from the business sector.

“Short selling is part of investing, “ complained James Cordier of Liberty Trading Group, “and when you see government leaders proposing rules like that, it seems a little desperate. It struck fear into people that things are still not in the mend in Europe.”

“It’s become increasingly clear that there are still separate countries with their own political agendas,” said Kim Caughey of Fort Pitt Capital Group. “I think that’s what’s caused nervousness yesterday and today.”

The ban likewise took immediate toll on the markets. Stocks in the US, Europe and Asia suffered losses.

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info