The Dow Jones industrial average fell 119.48 points, or 1.21 percent, to 9,762.69. The Standard & Poor’s 500 Index dropped 20.78 points, or 1.95 percent, to 1,042.63. The Nasdaq Composite Index slid 56.48 points, to close at 2,059.61. The benchmark Nikkei lost 1.8 percent or 183.95 points to 9,891.10, its lowest close since Oct. 8. The Topix dropped 0.7 percent to 882.26.

Yesterday, Norway became the first Western European country since the onset of the financial crisis to raise the cost of borrowing. Interest rates rose to 1.5 per cent to control inflationary pressures in the oil-exporting country. Yesterday, Saudi Aramco announced that it will begin using the Argus Sour Crude Index (ASCI) published by Argus Media as the benchmark price for all grades of crude oil sold to US customers – this will be a move away from WTI. In the US New home sales fell 3.6% to 402,000 in September, a larger drop than economists had expected. Orders for US durable goods were up 1% in September, in line with forecasts.

Due for release today, JPY Bank of Japan Interest Rate, EUR German Unemployment, EUR German Unemployment Rate s.a., GBP Mortgage Approvals, GBP Net Consumer Credit, UK M4 money supply for September (final read), USD Gross Domestic Product, USD Gross Domestic Product Price Index.

By Greg Secker