02.07.2014 - General Motors is recalling 8.5 million vehicles

The stock price of General Motors continues to grow, despite the news about a new recall of vehicles. Support for the bulls is provided by the news about the growth of car sales in the U.S. in June by 1.0% versus the expected decline by 8.5%.

It is worth noting that the company has announced a recall of 8.5 million vehicles to correct a defect of ignition, which has led to 16 deaths. The amount of compensation to the victims and their families will be from 20 thousand to several million dollars. This year has been recalled 29 million vehicles, more than the company sold during the period 2005-2013. We expect that the company's share price growth will be short and the price will decline in the medium term by 6-8%.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.