The Dow Jones industrial average was down 42.25 points, or 0.44 percent, at 9,665.19. The Standard & Poor’s 500 Index fell 6.40 points, or 0.61 percent, at 1,044.38. The Nasdaq Composite Index closed down 16.69 points, or 0.79 percent, at 2,090.92.U.S. stocks fell on Friday after disappointing data on durable goods orders and housing. The FTSEurofirst 300 of top European shares closed 0.4 percent lower at 983.91 points. European were led lower by weaker financials which outpaced gains in pharmaceutical and energy stocks. On Monday Japan’s Nikkei average fell below the 10,000 mark to its weakest level in two months. The benchmark Nikkei .N225 touched 9,989.65, breaking below 10,000 for the first time since July 24 before rising back to 10,023.99, down 2.4 percent. The broader Topix shed 2.3 percent to 901.72.

Yesterday, Barack Obama welcomed world leaders to the G20 summit in Pittsburgh. The dignitaries plan to thrash out a deal to try and prevent a repeat of the banking crisis that has devastated the global economy. Jean-Claude Trichet, said the members of the G20 must tackle global economic imbalances in its new role as the key international policy forum. While many market participants have enjoyed a rally through 2009, the growing budget deficits are going to be hard to escape. In the US, there is hesitation to move away from a strong dollar policy rhetoric. Of course there has to be hesitation as the dollar still is the world’s currency reserve. On the other hand in the UK, Bank of England Governor, Mervyn King caused the pound further pain by stating that a weak pound was helping rebalance the UK economy.

Due for release today there are JPY Tokyo National Consumer Price Index, FED National Activity Index, EUR German Consumer Price Index.

By Greg Secker