Japan’s Nikkei 225 was down 0.2, with South Korea’s Kospi composite up 0.2% and Australia’s S&P Index/ASX 200 off 0.3%. China’s Shanghai composite was down 0.6% as Asia failed to show any will to move, volumes remained slow as the world awaits the developments in the G8 summit set to start tomorrow in L’Aquila Italy. US ISM non-manufacturing index rose to 47% from 44% in May – sending stock markets on a rally and the Dollar tumbling as a result.

Investors are afraid to be excessively long the dollar ahead of the G8 as one of the reported themes will be the U.S and its global reserve currency status. Officials from India, China and now Russian President Medvedev have voiced concern about the Greenback’s role as the global reserve currency. Interestingly enough these three countries are the largest holders of foreign exchange reserves (which mostly comprise of USD). President Medvedev went on to say that although the current system is flawed “there is no alternative to the U.S. Dollar or the European Currency”.

The RBA kept rates at 3.00% as economic indicators show that the 4.25% cut in a 6 month period, A$12Bn handouts to households and a A$22Bn commitment to job creation (infrastructure spending) has boosted the economy. This said, RBA Governor Stevens didn’t rule out further cuts if unemployment continued to rise. His comments about why Australia fared so well in this crisis outlined it’s limited exposure to the credit markets and strong ties with China – the economic powerhouse largely expected to pull Asia and the world out of this current downturn.

G10 Advancers and Decliners vs USD

Global Indexes Current Level % Change
Nikkei 225 Index9647.79- 0.34
Hang Seng Index18097.08+ 0.65
Shanghai Index3111.56- 0.42
FTSE futures4166- 0.73
DAX futures4669+ 0.15
DJIA futures8259- 0.22
Nasdaq futures1437- 0.28

World Markets Current Level % Change
Gold924.13- 0.09
Silver13.225- 0.34
VIX29+ 3.76
Crude wti64.25+ 0.31
USD Index80.5+ 0.16

Todays Calender Estimates Previous Country / GMT
UK Industrial Production (May)0.20%0.50%UK / 08:30
UK Manufacturing Production0.20%0.50%UK / 08:30
GER Factory Orders0.50%0.00%DE / 10:00
US ABC Consumer confidence-50-51US / 21:00