The Dow Jones industrial average dropped 11.11 points, to 10,426.31. The Standard & Poor’s 500 Index dipped just 0.52 of a point, to finish at 1,109.80. The Nasdaq Composite Index lost 10.64 points, or 0.48 percent, to end at 2,193.14. The Nikkei fell earlier to a four-month intraday low of 9,496.07. The Topix index, which broke below its 200-day moving average last week.

Yesterday, EU authorities approved plans by three major European banks to sell chunks of their operations in return for state aid, marking the latest regulatory-enforced financial break-ups. Yesterday, US gold futures passed the $1,153 mark for the first time as investors piled into precious metals as an alternative to the weaker US dollars. Silver, platinum and palladium reached their highest prices in at least 14 months. President Barack Obama has warned that the US economy may slip into a “double-dip recession” unless urgent steps are taken to control government borrowing. Obama said his administration face difficulties whilst trying to encourage job creation while reducing the soaring budget deficit. Construction of new homes in the United States hit a six month low in October, providing more evidence of the economy’s sluggish recovery.

Due for release today is the AUD Average Weekly Wages, AUD Average Weekly Wages, JPY All Industry Activity Index, CHF Trade Balance, GBP Public Finances, GBP Retail Sales, GBP Public Sector Net Borrowing, GBP Major Banks Mortgage Approvals.

By Greg Secker

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