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Current Futures: Dow -38.00, S&P -5.20, NASDAQ -7.50

Asian markets and U.S. futures continued to decline tonight, shedding some small parts of the rally that started in early March. Tonight is the second consecutive day of declines seen in major indexes from Asia, following the small declines posted on Monday. 

Asian stocks declined as the Japanese yen strengthened against every other major currency, adding more problems to the Japanese and Asian exporters. The combination of a stronger yen, together with the wider loss announced yesterday by Toyota, caused the automakers to drop the most tonight. The automaker index was closely followed by the financial sector, after HSBC, one of the world’s biggest banks continues to forecasts a tough year for the U.S. mortgage industry, despite all the recent green shots from rival banks. The bank said it would have to increase its provisions for the current year, as the default rate will continue climbing.

TheLFB-Forex.com Trade Team notes that today’s decline came after two months of strong gains, time which some shares appreciated more than their real prospect. Some alarm bells have gone off over the last few weeks about the health of the current rally, since the shares that gained the most –the financials – were actually the ones shorted the most. This usually denotes a lot of indecision, something that does not support the size of the recent rally. However, as investors take some profits (probably the first in the last two years) the market will return to its fundamentals, TheLFB-Forex.com Trade Team commented. 

Overnight, the Japanese Nikkei declined 79.95 points (0.85%) to 9,372.03. The Australian S&P/Asx slipped 63.80 points (1.63%) to 3,862.20. 

Crude oil for May delivery was recently trading at $58.60 per barrel, higher by $0.10.

Gold for May delivery was recently trading higher by $0.20 to $913.50.