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Current Futures: Dow -2.00, S&P -1.00, NASDAQ -6.00

The major indexes from the U.S. markets are trading lower, as the S&P appears reluctant to break above the 945.00 resistance area. European shares closed lower, even though by the end of the session it gave the impression it could recover the declines seen near the opening bell.

The last few trading sessions had been influenced by the declines in the commodity market, mainly oil, which declined 2% in intra-day trading but recovered most of the ground through the U.S. session, and natural gas, which so far lost almost 4%. Even though the U.S. markets fell only a limited amount, the declines were widespread to the majority of stocks, something that also happened during the European session. TheLFB-Forex.com Trade Team noted that this is a rather strange situation since usually when the vast majority of stocks decline (as it was the case today), the major indexes post very strong declines (which did not happened) as well.

In Europe, shares retreated as investors think shares are very expensive related to their earnings perspective. Every market opened for trading in Europe fell on Monday, Iceland being the only exception, as the same commodity stocks led the market lower. Moreover, the financials were among the worst performers of the day in Europe, after Lloyds failed to find enough buyers for its rights issue.

In the Treasury market, investors bought the safety of short-term debt paper, but sold the longer-term ones as most market participants judge inflation will pick up very strongly over the coming months, TheLFB-Forex.com Trade Team said. The spread between the 10-year Treasury notes and the similar maturity TIPS reached almost 2%, the most since September. Over the next three days, the Treasury is expected to sell $65 billion of debt.

Overnight, the Japanese Nikkei added 97.62 points (1.00%) to 9,865.63. The Australian S&P/Asx advanced 36.60 points (0.93%) to 3,971.20. The U.K. Ftse declined 33.34 points (0.75%) to 4,405.22, while the German Dax lost 72.31 points (1.42%) to 5,004.72. The Dow Jones declined 103.54 points (1.18%) to 8,659.59, while the S&P index lost 10.10 points (1.07%) to 929.99.

Crude oil for July delivery was recently trading at $68.10 per barrel, lower by $0.20.

Gold for July delivery was recently trading lower by $10.60 to $952.00.

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