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Current Futures: Dow +28.00, S&P +3.40, NASDAQ +5.75

Asian markets declined for a second day, extending the global rut. Despite this, U.S. futures are trading in the green for the first time in the last few days.

Asian and U.S. markets tumbled tonight after the U.K. saw its rating outlook downgraded, with a 1 in 3 chance to lose the triple-A rating. According to TheLFB-Forex.com Trade Team, the situation of the U.S. public deficit is not very different from the U.K. Both countries have a huge public debt burden, with this year’s public deficit set to reach a massive 12% of the economy. However, because of its position, the U.S. economy is not under threat to lose its triple-A rating, for now. 

Additional negative news came from the weekly unemployment claims, which continued to stay above the 600K level. TheLFB-Forex.com notes that the high number of jobless people looking for benefits is a good indicator that the pain in the labor market is not easing. Some argue that the unemployment rate in the U.S. economy is heading towards 10%, and may continue to grow even after the U.S. economy bottoms. 
In the Asian markets, exporters continued to decline tonight, as the Japanese yen extended its gains against the dollar. The vast majority of Asian companies take their profits from foreign markets, so it should not be a surprise that the yen’s strength is interpreted as a negative move in the equity markets.

Overnight, the Japanese Nikkei declined 32.49 points (0.35%) to 9,231.66. The Australian S&P/Asx fell 55.90 points (1.47%) to 3,758.00. 

Crude oil for June delivery was recently trading at $61.40 per barrel, higher by $0.30.

Gold for June delivery was recently trading higher by $3.40 to $954.10.

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