TODAY Oct 10-2012 FOREX IN REVIEWS

German Premier Angela Merkel and European Finance Ministers have commended the efforts of Greek Prime Minister Antonis Samaras' cuts to the budget as the next payment tranche rapidly approaches. Demonstrators in Greece were not so pleased as over 20,000 voiced their displeasure by protesting Merkel's visit outside of parliament. The Greek economy is still expected to shrink about 4% in 2012 and deficit cutting measures are well off their mark. Spanish Prime Minister Rajoy is scheduled to meet Francois Hollande later today as industrial production figures from across Europe are due. The Spanish IBEX led equity indices lower, crumbling -1.85%, while the Euro Stoxx 50 fell -0.96% and the German DAX slid -0.78%. EURUSD has ticked lower, declining below the 1.29 handle to 1.2857.

Asian markets are weaker following the earning figures released from aluminum maker Alcoa which stated that global demand is forecast to decline. The company managed to beat expectations but China was cited as the main obstacle to growth. The Japanese Nikkei is leading major indices to the downside, tumbling -1.93% as auto sales have plunged following the ongoing territorial dispute with China over a group of Islands claimed by both nations. The Australian ASX has also weakened, losing -0.31% as the Hang Seng outperforms peers, falling only -0.21%. Some analysts have pointed to the decline as a correction for equities which soared in September post European optimism, but a continued stream of bad news has put a damper on the rally. AUDUSD has risen 0.15% as USDJPY remains unchanged and NZDUSD falls -0.10%.

As Alcoa kicks of earnings season in equity markets, threats to global growth remain evident even after the aluminum producer beat expectations. Equity markets have continued to fall since the latest quantitative easing announcement and the debt crisis still manages to steal the spotlight with the latest bank lawsuits. The U.S. moved yesterday to file civil mortgage fraud suit against Wells Fargo for irresponsible and reckless lending practices. This brings back to the forefront the implicit guarantees backing banks as the promise of a bailout encourages risky behaviors. The Nasdaq underperformed peers, sliding -1.52% while the S&P 500 and Dow Jones also declined markedly, falling -0.99% and -0.81% respectively. Crude oil has pulled back -0.48% to $91.95 per barrel following a $3.50 rally. Gold is trading mostly unchanged at $1764.90 after yesterday's move lowe

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