Schedule of stocks as worries over Europe linger

NEW YORK - continued concerns about persistent European debt crisis in the shadow of small oil prices rise and stocks pushed slightly lower on Tuesday.

Oil rose nearly $ 2 to $ 99.59 per barrel after large banks raised their forecasts for the crude oil prices. Analysts from Goldman Sachs, J.P. Morgan and Morgan Stanley predicts that an increase in global demand would drive the higher oil prices later this year. Goldman analysts announce oil prices could reach $ 135 per barrel at the end of 2012.

Stocks fluctuated between gains and losses throughout the day, with Chevron Corp. and other companies of energy with the largest gains. Energy companies in the S & P 500 increased by 1.3%, most of the groups of ten of the industry in the index.

The Dow Jones industrial average fell 25.05 points, or 0.2 percent, to close at 12,356.21. The standard & poor 500 index fell 1.09 point to 1,316.28. The Nasdaq composite dropped 12.74 or 0.5%, to 2,746.16.

Stocks had been on a tear for the first four months of the year, lifted by reports of stronger earnings, the labour market improvement and other signs of economic recovery. But all three major indexes have lost more than 3.5% this month, then the revenues remain strong. Widespread optimism was pushed aside by a variety of concerns, including the impact of high prices of oil on consumer spending and debt disorders the risk that Europe could get worse.

Markets face more troubling news on Europe Tuesday, when the main opposition of the Greece party said that he opposed the latest attempts of the Government to reduce the debt. News also dampened hopes that the country could be able to repair its finances enough to get another prepared package of the Monetary Fund International.

Ratings agency Moody has also warned that a restructuring of the debt of the Greece would be regarded as a failure. That would result in costs of borrowing for other European countries to debt short to soar.

URI Landesman, Chairman of hedge fund manager partners Platinum, said a Greek default could start a chain reaction affecting the large countries such as the Spain - the fourth economy in Europe - wreaking havoc on the world economy.

"If you had a defect in Spanish, it would be only one World Bank not affected," said Landesman.

US banks had 187 billion at stake in Spain at the end of last September, according to the most recent data of the Bank of international settlements. The amount includes holdings of government debt, derivatives contracts and other commitments.

European stocks managed to recover after a decline Monday, in part because of a reassuring report Germany optimism business has been stable.

The Germany DAX and England FTSE 100 a completed day 0.4% higher. CAC - 40 added France 0.3 per cent. The euro also rose slightly against the dollar after having fallen to a low Monday in two months.

The US Commerce Department reported that sales of new homes have increased slightly in April, but at a rate far below what would be normal in a healthy housing market. Sales increased at an annual rate of 323 000 to 300 000 in March.

New homes are attractive to their budget families because their median price is about 31% more than previously occupied homes. It is two times the typical price of a healthy economy difference. At their current pace, new home sales are on track for a sixth year of experience cuts.

Energy company El Paso Corp. has increased by 6%, most of any stock in the S & P 500, after having declared that it has itself split into two companies listed at the end of this year.

AutoZone Inc. has increased by 6% after the specialty retailer earnings jumped 12 percent on strong sales of its auto parts Duralast.

Stanley Black & Decker Inc. has dropped 2% after the announcement of the law firm of Goldfarb Branham LLP that they were investigating the Board of Directors of the company over questions about CEO compensation.

Medtronic Inc. fell 1% after earnings had forecast.

Falling share outpaced rising by a small margin on the New York Stock Exchange. Trading volume was $ 3.6 billion shares.

Danger of unequal Europe recovery fell: Nowotny

Vienna - the danger of an economic recovery uneven in Europe decreased despite concerns about the irregular nature of the recovery, of the European Central Bank Governing Council Member Ewald Nowotny said Monday.

"One cannot exclude the possibility of a slowdown of recovery, but I think that the risk of development of w or l-shaped declined significantly," he told a conference organized by the Central Bank.

"I think that we are now clearly on a sustainable path."

Germany and small eurozone export dependent countries will pave the way, while some countries of the periphery lag, said.

Concerns of market on the longevity of the restoration of the euro area have stepped up a notch Monday after a block of bad news over the weekend.

After a break of Fitch Ratings of Greek debt by three notches later Friday, rival cut Standard & Poor's Outlook for the Italy to "negative", "stable" Saturday, while the Government of the Spain has been upset after a crushing defeat in regional elections Sunday.

Markets debt responded by sending differences in performance on Spanish and Italian of 10-year bonds against bunds German at broader levels since January, while the euro to a minimum of two months, the dollar slipped and hit a record low against the Swiss franc.

"Although this difference is obviously worrying, we should not restrain ourselves with emphasis on the only problematic cases," said Nowotny, noting the European economy on average performance was good during and after the crisis.

He has called for strict budgetary discipline, emphasis on counter-cyclical policies during economic increases, a progressive approach to institutional reform and reduced the level of indebtedness.

"Given the exceptional nature of the current crisis, it is necessary to think of a reasonable and balanced reform to be able to distribute the costs of the crisis politically sustainable and equitable manner."

Summary box: fears of diving of U.S. stocks on the debt of Europe

The DOMINO effect: after three days of bad news about the debt crisis of Europe sent Asian and European markets down Monday, it was Wall Street Tower. The Dow Jones industrial average fell as much as 180 points before paring back some of its losses. An another steep downgrade of the credit rating of the Greece, a warning on the Italy debt and a major defeat of the party in power to the Spain caused new concerns about Europe's debt crisis.

DOLLAR climbs: the US dollar rose against the euro. A stronger dollar, it is more expensive for other countries buying US exports, hurt American businesses that sell goods abroad.

Indexes: the Dow Jones index fell 130.78 points, or 1.1%, to close at 12,381.26. The standard & poor 500 index has dropped from 15.90 or 1.2%, to 1,317.37. The Nasdaq composite index fell 44.42 or 1.6%, to 2,758.90.

Europe races to claim the top job at the IMF

BRUSSELS/WASHINGTON  - European leaders raced on Friday to nominate a successor for fallen IMF chief Dominique Strauss-Kahn before a G8 summit next week, with French Economy Minister Christine Lagarde in pole position.

As Europe rallied around Lagarde as their most likely choice for the International Monetary Fund's top job, which has always gone to a European, the most widely tipped potential candidate from among emerging economies ruled himself out.

Strauss-Kahn was due to leave jail on lease on Friday and be placed under house arrest and round-the-clock monitoring after he was indicted for the alleged attempted rape of a New York hotel maid last Saturday.

The man once seen as a possible next president of France denies the charges and has vowed to prove his innocence.

Lawyers representing Strauss-Kahn posted $1 million in lease and $5 million insurance bond, but said other release conditions set out by a judge - which included being placed under 24-hour home detention with electronic monitoring - needed to be resolved before he could be released.

German Chancellor Angela Merkel all purpose endorsed Lagarde, telling a Berlin news conference: "Among the names mentioned for the IMF estate is French Minister Christine Lagarde, whom I rate highly."

Goal Oxford said some European Union countries questioned whether the well-regarded corporate lawyer, who would be the first woman to head the IMF, could be anointed before a special court decides next month if she should be investigated in a French legal case.

Since Strauss-Kahn resigned on Wednesday, EU governments have rushed to find a European replacement before emerging nations, which have long application a bigger say in running the Washington-based global lender, can mount a bid for the job.

Asian, Middle Eastern and African Oxford at the IMF headquarters in Washington said emerging nations were seeking a consensus candidate.

That task was made harder when former Turkish economy minister Kemal Dervis, seen as the front-runner among potential non-European contenders, ruled himself out.

"Speculation about succession at the IMF has included me in the group of persons with relevant experience." "But I have not been, and will not be a candidate," he said in a statement.

The New York Times reported that Dervis had an affair with a subordinate when he was a senior World Bank executive. Asked to how his office at the Brookings Institution in Washington said he would have no further statement.

QUICK REPLACEMENT?

European and U.S. officials want to move quickly to replace Strauss-Kahn purpose they also risk angering developing economies if they are seen to do a backroom deal for Europe again.

"we are consulting broadly with the fund's shareholders from emerging markets, as well as advanced economies," said U.S. Treasury Secretary Timothy Geithner, stressing that the process should be open and move quickly.

"We are prepared to support a candidate with the requisite, deep experience and leadership qualities, and who can command broad support among the fund's membership."

The United States and European nations jointly hold more than half of the IMF's votes, giving them enough power to decide who leads it.

Oxford said European Council President Herman van Rompuy, who chairs summits of the 27-nation EU, and European Commission President Jose Manuel Barroso were trying to secure a deal on Lagarde after the three biggest European powers - Germany, France and Britain - threw their weight behind her.

Jean-Claude Juncker, who chairs euro zone finance ministers, and Italian Prime Minister Silvio Berlusconi endorsed her on Thursday.

"it has to be a quick decision." "it would be best to have consensus before going to the G8," one diplomat said.

Leaders of the Group of Eight industrialized nations - the United States, Russia, Japan, Canada, Germany, France, Britain and Italy, plus the European Union - meet in the French seaside resort of Deauville on May 26 - 27.

Strauss-Kahn, a global high-flier, spent the last of four nights at New York's notorious Rikers Island jail on Thursday.

Once released, he would be taken to an undisclosed location where he would be safely and discreetly handed over to lawyers and, possibly, members of his family to avoid the media, said a spokeswoman for the New York City Department of Correction.

He would also have unlimited access to his lawyers to prepare his defense.

Under his IMF contract, Strauss-Kahn is entitled to a one-off payment of $250,000 with annual pension payments "far, far less than that amount", the IMF said, dismissing media reports of a bigger package as "grossly over estimated."

Europeans argue it is essential to keep global finance's top job with the IMF so immersed in helping eurozone states such as Greece, Ireland and Portugal with massive debts.

Some officials said the absence of Strauss-Kahn's powers of persuasion contributed to disarray in Europe this week over whether Greece should restructure or "reprofile" its debt.

IMF official Ajai Chopra, following Strauss-Kahn's line, said a more comprehensive approach to the euro zone debt crisis was urgently needed and the EU should do more to help Ireland renewed access to debt markets.

The IMF board was due to hold a regular meeting on Friday to approve its share of a 78 billion-euro bailout for Portugal. It was unclear whether it would discuss the process for choosing a new managing director.

LAGARDE UNDER SCRUTINY

The case marks a spectacular fall for Strauss-Kahn, who was highly regarded for his part in tackling the global financial crisis of 2007-09 and Europe's debt crisis.

His lawyer, Benjamin Brafman, has said the evidence "will not be consistent with a forcible encounter." Prosecutor John McConnell said on Thursday the maid, a 32-year-old from Guinea, told a "compelling and unwavering story."

An arraignment hearing is set for June 6, when Strauss-Kahn will formally answer the charges, but a trial may be six months or more away. If convicted, he could face 25 years in prison.

A Frenchwoman considering filing a complaint against Strauss-Kahn over an alleged 2002 sexual assault in France does not want to testify to U.S. investigators looking into the New York case, her lawyer said.

LaGarde is also under some scrutiny.

Chairman of the U.S. law firm Baker & McKenzie in Chicago before she joined the French government in 2005, she is a fluent English speaker and has experience balancing the demands of rich and developing countries.

A public prosecutor has recommended that she be investigated for allegedly abusing her authority to sidestep the justice system and push through a 285 million-euro arbitration settlement with businessman and ex-minister Bernard Tapie, overruling Finance Ministry experts at key stages. She denies wrongdoing and says she is victim of a smear campaign.

A special jurisdiction created to try ministers for offenses committed while in office will rule in mid-June whether she should face a full inquiry.

Oxford said Belgium, whose finance minister may harbor

IMF ambitions, was among smaller countries that queried whether Lagarde could be nominated before the box is cleared up.

"We must be absolutely certain that the candidate is able to serve until the end of the mandate this time," one said.

China and Japan called for a transparent, merit-based process. A European source said Beijing was privately supportive of Lagarde who now needed Latin American backing.

Russia and other ex-Soviet states backed the Kazakh central bank chief, Grigory Marchenko.