Article by Investazor.com
The conflicts taking place in Syria combined with the turmoil in Egipt lead to important movements in the price of oil. Besides this situation, United States intervened and wants to held responsible Syria for using chemical weapons against civilians. This intervention betrayed the U.S.’s intention to step in the arab issues which provokes so many turbulences so far. Even if Syria isn’t an important player in the oil industries, the biggest fears are realted to the possibility of arousing a conflict which would cover the entire Middle East zone. An important ally of United States in this matter is United Kingdom. British Prime Minister David Cameron will indicate its position tomorrow after meeting with the Britain’s National Security Council. In its view, this problem requires a group involvment and collaboration in order to avoid any international conflicts.
In the United States the situation seems to agitate as in the Middle East. Tensions were caused by the tapering of the Quantitative Easing program and the pressures on the Congress, which may be bound to act and to raise debt limit again, even if the economy became very sensitive to this change. The last news about U.S. indicated a decrease in the consumers’ orders of core durable goods -0.6% which indicates a awareness of the production. On the other side, the consumer’s confidence keep improving and stabilizing in this area (last release of the confidence index of Conference Board indicated 81.5 points ).
For the next period it is important to closely watch the data coming from the labor market in U.S. ( unemployment claims on Thursday) and the NFP next week. These two indicators may give important hints concerning the future evolution of QE3.
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