Japan's Nikkei 225 index closed down -1.96 pct to a 2-1/2-year low of 12532. The Shanghai Composite dropped -3.59 pct to 4146.3 and the All Ords of Australia went down -1.74 pct to 52.75.7.

European equity markets have started the week on the soft side, giving up between -0.29 pct and -0.39 pct for the FTSE, CAC and DAX.

I believe the real problems in capital markets today are global in scope, but international banking and financial media are so US dominated that traders worldwide are focused on the US.

With respect to the health of the credit market, for example, European credit spreads set record wide levels on Friday. But, later in the day, as the Fed announced they purchased $200 billion of US govt securities from banks in order to put more reserves into the system, traders started to focus their concerns on US woes.

This morning however, according to Reuters, top-rated German bonds were especially in demand as traders sought safety.

Euro zone government bond futures opened higher with the June Bund future FGBLM8 up 36 ticks at 117.77. The two-year Schatz yield fell 5 basis points to 3.209 pct. The yield on the benchmark 10-year Bund was slightly lower at 3.757 pct. Intra-euro zone yield spreads were near levels not seen since the start of the Euro in 1999.

At 6:00am ET, the March Euro was trading at 1.5376; the April Crude at 104.375 and the March DJIA at 11899.

Gold, which is also a safe-haven trade, remained firm this morning, priced at about 977 until moments ago when it appears weakness is setting in to the precious metals group.

At 6:16am ET, spot gold, palladium, platinum and silver is at 973.07, 478, 2031, and 20.08, which has been weak since 5am. The sell-off may have begun.

---

Links & Charts

---

International Economics Review

US Economic Calendar.

---

International Equity Markets Review

Europe

Here is the latest session data for the bourses of Europe.

---

Here is the latest session data for the London stock exchange FTSE.

---

Here is the latest session data for the German DAX.

---

Here is the latest session data for the French CAC 40.

---

Here is the latest session data for the Milan Italy stock exchange MIBTEL.

---

Here is the latest session data for the Swiss market index.

---

Asia-Pacific

Here is the latest session data for the Asia-Pacific stock exchanges.

---

Here is the latest chart for the Japanese Nikkei 225 index.

---

Here is the latest chart for the Singapore index .

---

Here is the latest chart for the Shanghai Composite index .

---

Here is the latest chart for the Hong Kong Hang Seng index .

---

Here is the latest chart for the India BSE 30 index .

---

Here is the latest chart for the Australian All Ordinaries index .

---

US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

---

Oil Review

Here is the e-miNY Jan-08 Crude Oil chart.

Interactive Chart of Daily Crude Oil:

---

Gold & Precious Metals Review

Spot gold chart for the week

---

Spot silver chart for the week

---

Forex Review

Here is the chart of the week's trading in the $USD.

---