NEW YORK (Reuters) - The volatility will continue to apply the
Next week on Wall Street because of
persistent concerns about the crisis
debt in the euro area, which would divert
investors as risky assets as shares.
After the new decline suffered the week Weekly
Last, the S & P 500 now accuses a decrease of approximately
10% compared to a high of 18 months achieved an end
April, which means that the index more representative
Wall Street has entered a correction phase
after a rebound of almost 80% recorded from more
12 touched down in March 2009.
"The market is difficult. If you do not have the nerves
solid and if you do not have some fun
operate in volatile market conditions this is (...)
not the moment you start trading
stock market, "said Randy Frederick, director of
derivatives at Schwab Center.
Friday, Wall Street has ended sharply increase, putting
end a series of bearish three days with a
Movement of buying cheap. But on the whole
the past week, the Dow Jones and S & P 500 yielded
about 4% and the Nasdaq Composite approximately 5%.
On this same week, the volatility index of the Chicago
Board Options Exchange, also called "index
fear, "increased 30%. Before finishing down
12.4% to 40.10, Friday it had reached a higher
since 10 March 2009 to 48.20.
"Every down cycle begins with a correction. We
are in a type of environment where anxiety
investors are wondering whether it is just a
correction or the beginning of a downward cycle. The
players on the market in horror of the unknown and
that is why we could still find
significant fluctuations, "continued Randy Frederick.
According to the latter, the VIX, which is an estimate
volatility in the next 30 days, could evolve
35 and over 45.
Geithner IN EUROPE
Treasury Secretary Timothy Geithner will make a stop
Germany and Great Britain to discuss
economic and budgetary conditions in the euro area
on his return from a trip to China.
"Sure, we can quickly resolve this crisis
debt but this visit comes at the right time. We
do not know what comes out of these meetings but
could be a kind of coordinated action
address the problem of liquidity in Europe, "said
Jeff Kleintop, chief technology officer at LPL analysis
Financial.
For months the world stock markets and the euro
are under pressure because of fears that
Greek debt crisis spread to the entire
Euro area and cause a new blockage system
Financial World.
The stabilization mechanism of 750 billion euros
set two weeks ago by the European Union and the
International Monetary Fund (IMF) failed to
allay these fears and has even led to new
concerns.
Stakeholders fear that the measures
austerity in return demanded by the EU and the IMF,
as those that will be implemented in Greece and
Spain, not just nip in the bud growth already
fragile.
After the unexpected rise weekly listings
announced last week, the first since the
April, this statistic will be particularly
followed by Wall Street, which needed to be reassured
the state of the labor market.
"The improvement that we observed on the market
work has gradually been reduced to nil. The
Statistics this week will be very important
since seen whether this is a break or a decline
long term, "said Randy Frederick.
There will also be a series of indicators related to
housing market - which recovery is deemed
crucial for sustaining the growth recovery
economic - with sales of existing homes,
Case-Shiller index and new home sales.
Among other statistics headlights, include
Durable goods orders in April and
second estimate of gross domestic product (GDP)
U.S. first quarter.
