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Current Futures: Dow +9.00, S&P +1.20, NASDAQ +1.50
Asian markets continue their global decline, as the major indexes from the region are trading deep into the red territory. Despite this, U.S. futures has traded side-ways until now.
Asian markets are posting the strongest declines seen over the last few weeks, as some traders have doubts that the global economy has actually improved over the last three months of trading. Since March, the global equity markets rose almost 40% as investors began to price in a global recovery.TheLFB-Forex.com Trade Team has said on many occasions that the rally seemed too strong compared to the market’s fundamentals.
The global rut started on Monday morning, after the World Bank reported that they expect the global economy to contract a huge 2.9% in 2009, much worse than previously estimated. This has sent the financial market into risk-aversion mode, as it pulled the bears back onto the trading floors.
During the Asian session, commodity producers, consumer companies and carmakers posted the strongest declines. Commodity producers tumbled as the price of oil and industrial metals lost more than 4% on Monday, while Asian carmakers declined as the Japanese yen strengthened across the board. In the Nikkei 225, only 10 companies grew while the rest of the 215 traded deep into the red territory. A similar situation was seen in the S&P/Asx, where only 15 out of the 201 members advanced tonight, from which all but one advanced less than 1%.
Overnight, the Japanese Nikkei lost 265.01 points (2.70%) to 9,561.26. The Australian S&P/Asx declined 105.80 points (2.70%) to 3,812.40
Crude oil for July delivery was recently trading at $66.15 per barrel, lower by $0.40.
Gold for July delivery was recently trading lower by $0.20 to $921.30.
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