Wall Street praised the withdrawal of Larry Summers

Larry SummersThe session on Wall Street ended with the rise of Dow Jones and S & P 500, after the person nominated by the US President Barack Obama’s successor to Federal Reserve Chairman Ben Bernanke – Lawrence Summers himself withdrew from the race for the post. The “Blue chips” added 0.77 percent to 15,495 points, led by shares of Boeing and General Electric, but the shares of Hewlett-Packard, Microsoft and Intel put the brakes on the meter. The index of 500 large companies did increase by 0.59% to 1,698 points. Only the Nasdaq ended the session with a fall of 0.11% to 3718 points. The index heavy stocks of Apple, which fell 3% after a report was published that the Chinese carrier gives a lower subsidy for new iPhone. Among the gainers were shares of Facebook, after Goldman Sachs raised its assessment of the price of the lot. Just this month, the company’s market value has increased by 8 percent. The market participants rely on Janet Yellen as a possible successor to Bernanke. They see it as closer policy that leads the current Fed chairman, and expect that it will withdraw liquidity from the economy rapidly.
“I do not think the markets were aware of exactly what the Fed chairman would be Summers, so after dropping out of the race things look more confident and relaxed”, said Colleen told Bloomberg accompanied, director of Osborn&Scarborough in San Francisco. “It seems that a possible reduction program for the purchase of bonds is now accepted by the market, so expect modest movements”, she predicted.
The analysts are expecting the Fed meeting this week, the program for the purchase of assets be reduced by 10 billion USD. Meanwhile, the UN announced today that there is clear and convincing evidence that the attack on the outskirts of Damascus on 21st August was used sarin. USA and Russia are not yet ironed out the details of how it will destroy chemical weapons in the Middle East country, although adopted the process. The US Secretary of State John Kerry continues to allude to possible military strikes against Syria, ties them to the government’s commitments to deliver chemical weapons under the control of the international community and to respect the arrangements reached.
Meanwhile, the Russian Foreign Minister Sergei Lavrov said that even Syria to violate any agreement, it will first be considered by the Security Council of the UN, and then we will decide on further action. On CNBC reported today that was temporarily halted trading options because of problems with the reporting of prices.

Leave a Reply

Your email address will not be published. Required fields are marked *