The unrest and nervousness in the financial markets continue. The US stock exchanges saw its worst day this year after steep falls in Europe and Asia. Dow Jones ended 1.7 % down to 12 715, far below the symbolic 13 000 limit which was passed in Monday afternoon’s session. Asia is down fourth day in row. Only the Shanghai composite was flat.

A big portion of the 32 % gains seen in global equity markets since last October has been wiped out by the last days panic sales. Investors are securing profits and prefer to sit on the sidelines.

The debt crisis in Europe is back on the global focus after the interest rate of Spanish bonds has continued to raise after last week’s disappointing debt auction and traded close to 6 % yesterday.

The spread between the interest rate on German and Spanish bonds is reaching unacceptable high level.

Spain is a much bigger economy than the debt ridden Greece. As in Greece the Spanish government is on advises from EU and IMF trying to meet its challenges with the traditional budget cuts and austerities In an economy already deep in recession and 23 % unemployment. Spain’s situation illustrates once again that the Euro zone countries have not at all succeeded in finding the Right mix between austerity and economic stimulus. The more fundamental question on whether rigid and strict EURO rules are the right medicine for debt ridden Southern European countries, and the future of EURO is back on the agenda.

The disappointing US-job numbers have over the last 24 hours only led to a slightly strengthened the dollar in relation to a struggling Euro. The Euro has during the night’s trade gained 0,18 % vs. USD and is trading at 1.3104. The trend towards seeing Japanese Yen as a safe has continued. USD/JPY is at 80,88. Commodities are falling to its lowest levels in months due to weaker growth in China, stagnation in US and recession in Europe. The prospects for the BRICS countries are regarded as a positive light especially in a 6 – 12 months perspective. Oil prices fall strongly yesterday after reports on higher than expected US oil storage. Brent has stabilized in morning trade and is again above 120.

Gold was the winner yesterday and reached 1662. It has fallen back to present 1657 trading up. Silver is 31.55.

Futures for Europe and US are pointing down stabilizing somewhat after the last two days’ steep falls.