Crude oil's decline accelerates in European morning. Currently trading at 65.9, further weakness to 63 cannot be ruled out as anticipation on demand improvement diminished. Others in the energy complex also plunge with heating oil losing almost -2% to 1.802 while gasoline sliding to 1.921.

Stock markets tumbled in Asia. In China, the Shanghai Composite Index slumped almost -6% to settle at 2871. The gauge rallied to as high as 3471 in August and a deep correction has followed since then. Other closely watched indices also plummeted. Japan's Nikkei 225 stock Average slid -3.1% to close at 10269 and Hong Kong's Hang Seng Index plunged -3.6% to 20137.

European stock markets open lower with financial and resources sectors leading the fall. UK's FTSE drops -1.8% to 4630. Germany's DAX and France's CAC 40 slip -1.3% and -2.4% to 5207 and 3410 respectively.

The US will release readings on Empire State Manufacturing Index and NAHB's housing market Index for August later today. Analysts forecast the manufacturing index would have risen to 2.2 in August from -0.55 in the previous month while housing market index probably improved to 18 from 17 in July.

The dollar index rallies for the second day as investors trimmed positions in high-yield assets. According to Bank of Tokyo Mitsubishi UFH, the dollar should rise as leading indicators indicate the US economy will grow faster than forecast.

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Strength in USD weighs on gold which plunges below 940. While the theme of inflationary risk in the long term remains in play, if USD continues to rise, the yellow metal should continue to be under pressure.