Daily review 24/08/11

Wall Street trading was closed yesterday in price increased and is being conducted against a decline of 0.7% in sales of new homes in July - the third consecutive month.

Contributed to increases is the speculation of traders that the Federal Reserve intends to launch a third quantitative expansion soon.

S & P 500 rose by 3.4%, Dow Jones by 3% and the NASDAQ by- 4.3%.

Friday will be the annual meeting of central bank governors in Jackson Hole, Wyoming, and then the Federal Reserve chairman Ben Bernanke would have to deal with enormous pressures for taking steps to calm world markets.

After a week full of upheaval, which erased billions of dollars worth of companies on both sides of the ocean, investors will hope to see on friday a signal by the Federal Reserve that he have more options and sustainable to handle the crisis.

Meanwhile, U.S. President Barack Obama spoke with the billionaire investor Warren Buffett and scanned with him different ways to revive the job market and accelerate growth in the economy.

Rating agency Moody's cut yesterday the credit rating of Japan to Aa3 rating from Aa2 with a stable rating outlook.

According to rating agency's economists, the factors that led to the reduction centered on the budget deficit and government debt continues to rise since 2009.

In addition to the deadly earthquake that struck Japan last March urged the growth and created deflationary conditions.

Note that the first time since 2002 that Japan absorbs download classified by Moody's.