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Current Futures: Dow -83.00, S&P -7.70, NASDAQ -10.00

European and U.S. equity markets were influenced by a number of important economic reports on Tuesday, which managed to turn around the market’s optimism observed on Monday. As such, the major indexes from the two regions, U.S. and Europe broke once again below the break-even line.

U.S. futures started heading lower after a report showed that confidence among U.S. consumers dipped yet again in June, as consumers are affected by the rising unemployment rate. The Conference Board’s sentiment index fell down to 49.3, even though the market expected a 55.4 read. The market’s instant reaction to the report is not a big surprise, TheLFB-Forex.com Trade Team said, since 2/3 of the U.S. economy is driven by consumers and most market participants think that a possible recovery can only come if consumers spend. Moreover, the U.S. market was dragged lower as crude oil declined as much as $4 per barrel, or 5%, from the intra-day high it hit earlier on Tuesday.

Throughout the European session, a release showed that the U.K. economy contracted 2.4% in the first quarter, the strongest pace of contraction seen in the last five decades. Most of the downside revision came due to the construction sector, which contracted 6.9% in Q1, even though it was released at -2.4% in the previous estimates. The service sector, which makes up about 70% of the U.K. economy, contracted 1.6% in the first quarter from the previous one, TheLFB-Forex.com Trade Team said. In the mean time, a report showed that the rate of inflation was negative in the Euro-area in June for the first time on record. To some extent, this had been widely expected by both the ECB and market participants, TheLFB-Forex.com Trade Team said. 

On Thursday, the Dow Jones Index fell 97.87 points (1.15%) to 8,431.51, while the S&P 500 index lost 10.02 points (1.08%) to 917.21

Crude oil for July delivery was recently trading at $69.80 per barrel, lower by $1.60.

Gold for July delivery was recently trading lower by $12.60 to $928.10.

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