By FX Empire.com

It was a short lived enjoinment for the broad markets yesterday, and the pessimism that was ignited in the second part of the day is persisting throughout today, thereby losses are seen across the broad markets including the equities.

Since Germany cooled hopes for a rescue deal yesterday when Germany’s finance minister said expectations for a resolution were too optimistic, renewing fears from Europe’s debt crisis that could weigh down on the global recovery.

Investors became cautious once again after their confidence was shook yesterday, especially after China’s GDP figures for Q3 missed expectations early this morning, growing at the slowest pace in 2 years by 9.1% from 9.5% in Q2.

The rising inflation, the tight monetary policy, the spillover from Europe’s debt crisis and the slowdown in theUSconsumption all contributed to the slowdown seen in the Chinese economy.

And since China is a major oil and metal consumer, commodities fell today on believes demand may lessen in the upcoming months, thereby oil was trading as of this writing around $85.88 per barrel while gold was trading around $1658.00.

Asian stocks fell today by the most in two weeks on reignited fears over Europe’s debt crisis and a slower growth in China. In Europe FTSE 100 fell as of this writing 0.92%, DAX fell 0.21% and CAC 40 fell 1.93%.

As demand on safe haven increased today, the yen is seen strengthening and trading around 76.72 while the dollar index is trading to the upside around 77.37 although news were mixed from the U.S. industrial sector yesterday.

As for today, investors await the PPI and the cash flow report from the States, while U.K. released its CPI for Sep. which rose to record high at 5.2%, and Germany released its economic sentiment report which fell more that expected to -48.3 in Oct.

Thereby, the pound and the euro were given a stronger downside push today, where the pound is trading around 1.5714 while the single currency is trading as of this wiring around the 1.3670 level.

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