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Current Futures: Dow -24.00, S&P -2.10, NASDAQ -4.75

Overnight markets are trading slightly below the break-even line, mirroring how the S&P futures have behaved so on Friday.

The major indexes from Europe are currently posting small declines, but the trading volumes recorded overnight can be described at best as very thin. Up until now, both the German Dax and the U.K. FTSE have moved in a small range of just a few basis points, whereas the S&P futures have maintained a side-ways channel of approximately 1.5 basis points, or 0.1%, most of the time. Earlier in the day, the Nikkei closed lower for the eighth consecutive day, also trading on a very weak volume.

In Europe, the sectors that helped the market advance on Thursday are now pulling the major indexes lower on Friday. In the German Dax, carmakers were sold off as auto sales are likely to decline over the coming quarters, as the government programs to support new car sales are likely to expire relatively soon, TheLFB-Forex.com Trade Team said. In U.K. FTSE trade, the same commodity stocks were among the worst performers, even though raw material companies helped the market advance just one day previously. The German Dax will very likely close lower for the fifth consecutive week, while the U.K. FTSE aims for the fourth red week in a row. 

On Friday, the market might had been sent back into a risk-aversion mode as rumors emerged that at least 10 Eastern European governments are in talks with the IMF regarding new loans. On the short term, this can be interpreted as bad news, since it shows that emerging economies (the ones that were supposed to sustain the global recovery) are still in a bad/weak shape, TheLFB-Forex.com Trade Team noted. However, in the long-term, IMF deals can be seen as a very positive thing, since it would force a number of important economic reforms in the region that otherwise would had never been done.

Overnight, the U.K. FTSE fell 10.83 points (0.26%) to 4,147.83, while t he German Dax slipped 2.53 points (0.05%) to 4,627.54

Crude oil for July delivery was recently trading at $59.90 per barrel, lower by $0.60. This is the third consecutive day in which crude oil struggles to break below the $60 benchmark.

Gold for July delivery was recently trading lower by $3.20 to $910.10. Recently, gold broke below a trend-line that held it since early January 2009.

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