The Australian equities are pointed for a drop of about one per cent on the open of the market today after US stocks slid into negative territory on the back of the Federal Reserve's gloomy assessment on the U.S. economy.
The Dow fell 72.43 points to finish the session at 11504.62 while the S&P500 index lost 15.50 points at 1209.88. Both Indices had been in positive territory prior to the release of the Fed's beige book report of economic activity around the country, but quickly sank to hit the day's lows as investors pared back risk in line with the central bank's cautiousness on the domestic economy.
The EURUSD (see above chart) turned negative in the overnight session trading down from highs of 1.3871 to lows of 1.3732 after the latest plan for Europe's bailout fund weighed on the common currency.
WTI oil fell from one month highs of 89.66 to lows of 85.98 per barrel after a split emerged between France and Germany on the proposals to increase the European bailout fund and the negative outlook from the Federal Reserve on the US economy.
The volatility index traded up from lows of 32.00 to as high as 35.55 overnight showing that investors are showing signs of nervousness ahead of the European lawmakers meeting during the weekend.
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