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European Trade: European stock markets declined amid more bad news this morning. Concerns about the credit crisis, inflation, rigid consumers and a weak business outlook hit the market today, all at the same time. During the European session, economic releases showed business expectations and current business conditions sank to a five-year low, due to an imminent slowdown in developed economies. Both the Asian and U.S. markets closed in the red, with financial institutions having the biggest losses.

In Europe, the major stock market indexes are losing ground. The German Dax has declined 31.36 points (0.50%) to 6,265.59 reaching a 5-week low. The U.K. FTSE declined 113.80 points (2.07%) to 5,391.80, falling the most in the last month. European equities have traded lower for almost two weeks, as credit crunch concerns erode investors’ confidence.

Asian shares are continuing to extend losses. The MSCI pacific declined 1.1%, reaching -23% this year. The Nikkei declined 99.95 points (0.78%) to 12,778.71. The Australian S&P/Asx fell 48.13 points (0.23%) to 5,007.50. Financial shares listed on the Asian markets have lost 28% so far this year.

Gold
fell in Asia for the third day as the dollar's advance against the euro eroded bullion's appeal as an alternative asset. Bullion for immediate delivery fell $6.40 (0.78%) to $819.30.

Crude oil traded sideways as a tropical storm that formed in the Caribbean Sea may disrupt the world supply. Crude oil for September delivery gained $0.40 (0.35%) to $115.51

Previous Asian trade: Asian stocks tumbled reflecting the negative close on the European and U.S. stocks yesterday. The global equity markets are crippled by fears that another wave of write-downs might hit the bank’s valuation, making some of them enter in a bankruptcy procedures. The shares of financial companies listed on the Asian stock markets dropped 28% this year alone, while the XLF and the U.S. financial sector ETF dropped 30% this year, from which 3.52% only in the last session.

Source: Eurasian Session Overview: Major Indexes Loses Ground