Japanese Stocks fell for the seventh consecutive trading session in a row as new concerns over the health of the global economy caused yet another world wide sell off. At the time of writing (6.32amGMT), the Nikkei 225 of Japan was down 0.94%, valued at 9448.50 having rallied from over 1% down. Hong Kong’s Hang Seng index dropped by 1.3% whilst Electronics producer Sony plummeted 5% just a day after the company doubled its expectations of an annual loss to around $6.4bn.

The cause of the latest sell off was the Spanish debt auction yesterday. Rising yields are adding to fears that Spain will become the next eurozone nation to require a bailout. Spain, which accounts for 11% of the total output from the 17 member states making up the Eurozone, saw the yield on its 10-year bonds reach 5.99%, rising from 5.74%. At the same time, Investor sentiment is declining in the eurozone as a whole. Market research group Sentix showed that its index of investor confidence fell by 6.5 points to -14.7 in April, down from March’s figure of -8.2. Although Germany, the largest economy within the Eurozone, enjoyed yet another month’s growth for exports, up 1.6% in Feb, after a 3.4% increase for January; the clouds of uncertainty remain dark over the global economic recovery.

The world-wide flight from equities saw a slight firming of the USD, with the USD/JPY up 0.26%, trading at 80.89, however the US Dollar Index was down 0.07%, valued at 79.99 and the EUR/USD was up 0.14%, trading at 1.3100 before European markets opened.

Today, expect market volatility for both the EUR and USD as at 10.10am GMT, Italy has its short term debt auctions, followed by the German 10 year debt auction at 10.30am GMT. At 7pm GMT, the Federal Budget Balance is announced in the US,

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