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Current Futures: Dow -43.00, S&P -4.90, NASDAQ -7.00
Asian markets are posting small declines tonight, while the S&P futures are trading near the 935.00 area, the support of the last two days of trading, after it declined 5 points near the Sunday open.
The commodity stocks, reflecting the small declines seen on Friday, are dragging Asian markets lower. TheLFB-Forex.com Trade Team said that the commodity market looks a little overvalued compared to the current state of the global economy, something that puts under pressure the valuation of the companies that operate in the field. On the other hand, Japanese real estate companies were among the top gainers in the region, after a number of brokerage companies upgraded their outlook on the sector.
One clear sign that the global economy is abating the record contraction pace can be extracted from last G-8 conference, held over the weekend in Italy. As such, the finance ministers of the eight most industrialized countries focused on exit measures, rather than on plans to help the economy recover. TheLFB-Forex.com Trade Team argues that governments together with central banks are looking for ways to halt some of their interventions in the financial markets, as the economy seems to be approaching the recovery phase. If the political class fails to achieve a sustainable exit strategy, a harsh period of hyperinflation together with a renewed period of global contraction can be expected.
Overnight, the Japanese Nikkei lost 43.44 points (0.43%) to 10,092.38. The Australian S&P/Asx declined 8.40 points (0.21%) to 4,053.80.
Crude oil for July delivery was recently trading at $71.65 per barrel, lower by $0.40.
Gold for July delivery was recently trading lower by $2.40 to $938.30.
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