Wall Street shaken, remains concentrated on Japan and the Arab world

The New York Stock Exchange, shaken by the nuclear crisis that developed in Japan after the earthquake and further violence in the Arab world, will remain suspended next week to the international actuality.

The market is at a critical juncture: we have so many people who think that the fall in U.S markets was too strong that people who fear further negative consequences for the global economy of what is happening in Japan and Middle East, "said Michael James, of Wedbush Morgan Securities.

In the previous week, the Dow Jones lost 1.54%, closing Friday at 11,858.52 points.

The Nasdaq dropped 2.65% to 2643.67 points, and the expanded Standard & Poor's index's 1.92% to 1279.21 points.

The Dow Jones enchained three straight sessions of decline, which brought him Wednesday to its lowest level since Dec. 31, before rebounding on Thursday and Friday.

"If we think that we have at the same time a nuclear disaster, a dramatical sunami in the third world economy, the revolution in the Arabic world, and that the debt crisis in Europe is not being resolved, it is remarkable that the market is as strong, "notes Volokhine Gregori, of Meeschaert New York.

Investors have kept their eyes riveted on the Fukushima nuclear plant, where the dramatic events have succeeded.

This weekend, the authorities seem to have managed to avoid the worst. But for experts, the risk of significant radioactive releases stayed elevated Friday.

"It was a disaster but this is not the cataclysm, " observes Volokhine Gregori, which recognizes that market participants have difficulty in assessing the economic impact of the earthquake. "

The upheaval in the Arab world, sidelined earlier this week, then returned in force, when the UN passed a resolution authorizing the use force against the Libyan regime, which declared a cease-fire.

Demonstrations have also been quelled in Bahrain and Yemen.

"As a total lack of visibility, we can not handle events on a daily basis when you're an institutional investor, so it fails to act. This leaves the field open to those who do not worry invest long term and who just want to enjoy the positive and negative movements, "says Mr. Volokhine.

The economic statistics stayed largely positive in the United States. However, the acceleration of inflation has been confirmed.

The central bank has held that recovery was based on grounds "stronger" than before, while maintaining its monetary policy very accommodative.

Next week will be especially marked by real numbers: sales of existing homes on Monday and nine on Wednesday. On Thursday, investors react to orders for durable goods, then Friday at a new estimate of U.S. growth in the fourth quarter of 2010 and the index of consumer confidence.