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Current Futures: Dow -163.00, S&P -22.60, NASDAQ -37.00

U.S. equity markets continued the downside trend started during the European trading hours, and are now posting the biggest daily drop in almost a month. Equity markets were sent back into risk-aversion mode after the World Bank revised its growth forecast to the downside for the current year. 

Almost every company listed in the Dow Jones index declined on Monday, while most members of the S&P 500 are trading deep into the red territory. In the Dow Jones index, the financial sector and the commodity stocks, represented by Alcoa, led the pack of decliners. Moreover, only four companies out of the 30 members of the Dow Jones index advanced on Monday, from which all posted gains smaller than 1%. Except for the utilities sector, every other U.S. industry declined today, with the raw material companies posting the biggest declines as the price of crude lost almost 8% over the last two days of trading. Additionally, metals tumbled 5% on Monday, TheLFB-Forex.com Trade Team said. 

The weakness seen in the financial markets came shortly after the World Bank revised its growth projections to the downside for 2009. According to the institute’s forecasts, the global economy is expected to contract a whopping 2.9% in 2009, much lower than the March estimates, which forecasted a 1.7% contraction rate over the same period. To some extent, this report contradicts the current theme in the financial markets, of a V-share recovery phase, which usually denotes rapid recovery. 

With today’s declines, the S&P futures tested the 890.00 area down around the 23.6% retracement area where the trend started at the beginning of March, TheLFB-Forex.com Trade Team noted. The combination of weaker global growth and negative S&P futures caused the Russian Micex Index to lose 7.80% on Monday, t reaching a 20% decline since the top reached earlier this month. This may mean that the Russian market is the fist major stock market to re-enter in a bear mode. 

On Monday, the Dow Jones Index lost 170.34 points (1.99%) to 8,369.39, while the S&P 500 index lost 24.03 points (2.61%) to 897.20

Crude oil for July delivery was recently trading at $66.75 per barrel, lower by $2.80.

Gold for July delivery was recently trading lower by $14.60 to $921.60.

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