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Current Futures: Dow -66.00, S&P -10.10, NASDAQ -9.00
U.S. markets continue to move lower, as investors are re-valuing the state of the global economy. Earlier in the day, the European and the Asian markets also closed in the red.
The major U.S. indexes have reached the lowed value since late April on Wednesday, as investors continue to pull out of the cash equity markets. During the early U.S. session, the S&P futures managed to break below the 877.00 area, which has held the index since May 1. Investors remained in short mode until the S&P futures tested the 865.00 area, which represents the main resistance area for the month of April. Back then, the market needed almost two weeks to break above this swing point.
Wednesday is the seventh consecutive day in which crude oil has posted very strong declines. Since the intra-day high of $73.30 it reached on 06.30, crude oil plunged a little more than $13. Moreover, in this relatively short period, crude oil retraced half of the gains it posted since late April as investors think that the demand will be much weaker than expected over the coming quarters.
This has had wide implications in the equity markets, since raw materials companies plunged once with oil, putting downside pressure on the major indexes. TheLFB-Forex.com Trade Team commented that much of the recent declines seen in the stock market could be traced back to the commodity companies. Comparing the sectors performances over the last week of trading, raw materials lead the decline, while just the food and beverage sub-index of the consumer goods is still above the breakeven line.
The Dow Jones Index fell 65.30 points (0.80%) to 8,098.30, while the S&P 500 index declined 10.47 points (1.19%) to 870.56.
Crude oil for July delivery was recently trading at $60.15 per barrel, lower by $2.70.
Gold for July delivery was recently trading lower by $21.90 to $907.20.
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