With a sharp decline in the indices started the week on the New York Stock Exchange.
“Next week will be very volatile, as investors were frustrated by the debt problems of Europe and the debate on lifting the ceiling of U.S. debt”, said Paul Nolte of MarketWatch, Managing Director of Dearborn Partners.
An hour and a half after the beginning of the session Dow Jones tumbled 1.24 percent to 12,325 points, S & P 500 1.23% wiped by 1 299 points, while Nasdaq lost 1.39 percent to 2751 points. A spokesman for Republicans in the House of Representatives John Bonner said that his party will not accept any tax increases. Republicans will insist on a firm commitment to shrinking government budget deficit of the United States to reach agreement on the debt ceiling. This week is to go and more corporate accounts. Only the companies included in the S & P 500, 100 will announce its financial results.

The U.S. indexes ended Friday’s session with modest increases, but recorded weekly losses under the pressure of recent economic data. The Dow Jones Industrial Average rose 0.3 percent to 12 441.58 points on Friday. For the week the blue chip index fell 0.6 percent, this being the fourth consecutive week of decline for the index. The S & P 500 rose 0.4 percent to 1331.10 points on Friday, all 10 sectors grew. Weekly S & P 500 fell 0.2 percent and this is the fourth weekly loss for him. The Nasdaq Composite adding 0.5 percent to 2796.86 points. Index marks a decrease of 0.2 percent for the week, which is the second consecutive weekly decline.
The shares received some support during the day the index of the University of Michigan consumer confidence for May, which rose more than expected. Disappointing decline of 11.6 percent of the planned residential sales in April, however, “took the wind of positive data on consumer confidence, told CNN Money Mark Padoa, market strategist at Cantor Fitzgerald.
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The crude oil price is back above 97 dollars a barrel on the New York Stock Exchange after yesterday falling to its lowest level last week. The reason for this was speaking of Saudi Arabia that may cover the supply of oil, damaged because of the riots in Libya. According to the CEO of oil company Saudi Arabian Oil Khalid Al-Bankruptcy Libya continues to export oil despite the tense situation in the country. Because of the rapid increases in oil prices International Energy Agency (IEA) said last week it was ready to provide emergency supplies of raw material in case of shortage. The U.S. light crude for delivery in April, rising by 0.6 percent to 97.57 dollars a barrel in electronic trading today in New York. The price yesterday fell 91 cents to 96.97 dollars per barrel, its lowest level since Feb 22nd. The U.S. light crude rose 5.2 percent in February and by 23% over the past 12 months. The Brent obtained from the North Sea, rising by 0.5 percent to 112.35 dollars a barrel in London. The price yesterday fell 0.3 percent, but ended months with strong growth of 11%. The Brent rose more than U.S. light crude for the greater dependence of European countries by the oil supplies from Libya. A Bloomberg’s survey shows that oil production in Libya in February fell to its lowest level in eight years. It fell by 200 thousand barrels per day to average 1.385 million barrels. The civil riots from Morocco to Bahrain led to the resignation of state leaders in Tunisia and Egypt.
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It is possible Exchange operator Nasdaq OMX Group to make an offer for the acquisition of NYSE Euronext and thus to avoid lagging behind the wave of mergers of leading exchanges around the world, Reuters reported, citing anonymous sources. This is one of the few possible moves on Nasdaq in terms of increased activity in mergers in the sector. They leave fewer attractive opportunities for growth and development of exchange operators, sources indicate. The business model is based on the Nasdaq of high competitiveness and trade in shares at very narrow margins. Therefore, the operator is vulnerable to any merger, leading to optimization of trading systems and more competitive products. According to the Nasdaq aware there are other alternatives. They are linked to or linking to IntercontinentalExchange Exchange Trading Options CME. Option for owners and the Nasdaq was seeking a buyer who can buy shares of the operator. Currently, a prime candidate for acquisition of NYSE Euronext is Deutsche Boerse, as the transaction price will be around 10.2 billion dollars. For comparison, the Nasdaq market valuation is about 5.7 billion dollars.

The risk of new recessionary bottom increased during last six months, claims the president of the Federal Reserve in Chicago Charles Evans. New recessionary bottom is still the most likely scenario to the U.S. economy, but I am concerned about the strength of the recovery, “he said. High unemployment and a strong housing sector concerned do so fragile recovery, says Evans. It provides that unemployment, now 9.5 percent, remain high in the foreseeable future. Against this background, he said, ultra-expansionary monetary policy the Fed is appropriate. Evans argues that the securitization process by which mortgage loans are converted into packets of bonds sold to investors, reducing the incentive for creditors in the restructuring of troubled home loans. He said efforts to restructure these loans to prevent defaults are “drop in the ocean. Securitization appears a conflict between the interests of creditors and those companies serving the process, he says. The U.S. housing market collapse is already three years as construction is only 25% of their peak levels, and prices fell sharply across the country. Many economists fear that without the driving force behind the housing sector, economic recovery will take longer than usual. Shortly after Evans comments were exported data for sales of existing homes in the U.S. fell more than expected to 27.2 percent on a monthly and 25.5 percent yoy in July, reaching its lowest level since data began to be kept in 1999
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