After rising oil prices and persisting worries about the financial sector, stocks slowed down on Monday.

The reason behind rising price was the disappointment that Saudi Arabia was not increasing oil production more than 200,000 barrels a day. On the New York Mercantile Exchange, light, sweet crude oil settled at $ 136.74 per barrel with the increase of $1.38.

There was a rise in energy companies but airlines and financials are the sectors that recoded massive losses.

Now investors are focusing on the price of oil and two-day’s federal meeting that will held on Wednesday. Many investors are expecting central bank to continue its main federal funds rate on hold.

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Inflation

It has become one of most concerning issues of world. It is becoming the reason of a high price level in the consumer market. So the demand and supply of the commodities are badly affected.

Impact on consumer demands

The prices of commodities such as wheat, sugar, salt, spices, bread, vegetables, fruits, meat etc increased at such a huge level that has diminished the demands of the consumers. On the other hand it is the compulsion of the people to buy groceries for their survival.

Increasing oil prices cause inflation

The economic analysts are saying regarding the dilemma of inflation that it is occurred due to the increase in oil prices in United States. One barrel of oil is reached up to $126 a few days ago, which has become the major concern of sustaining the US economy. Furthermore both the political parties of democrat and republican have failed to control upon the inflation and most of the people blamed to US regime.

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NEW YORK (Reuters) Little change has been observed in stocks on Monday even after the largest deal of takeover in U.S. during this year the deal also helped to compensate the remarks by Warren Buffett that the decline in economic activity in the country would be even longer and deeper than it has been described by the many experts. Warren Buffett is also one of the supporters of that deal.

The deal between M&M candy maker Mars Inc and Wm Wrigley Jr. Co (WWY.N) which is the world’s biggest chewing gum manufacturer gave some life and hope to the dying M&A market in the country. Berkshire Hathaway owned by Buffett is going to sponsor the $23 billion purchase.

The deal highlighted the view that stocks are rather inexpensive with assessments perched close to their lowest in almost twelve years.

While talking to CNBC television Buffet stated that the decline in economic activity in the U.S would be even longer and deeper that it has been described by many experts in the U.S and other part of the world.

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