Equity markets are under immense scrutiny this morning. Following Friday’s global sell-off Asia again tumbled this morning with the Nikkei taking the biggest hit. The question traders maybe asking is why such a heightened state of nervousness has suddenly sprung? The reason may have to do with predictions regarding what the Federal Reserve will do this week.

But also important is the simple perspective that equities have been over-valued for some time particularly taking into context that growth has not mirrored the results seen among global bourses the past year. Risks continue to exist for mature and emerging markets. And yes quarterly earnings are right around the corner from the States. In other words we will see if the great pronouncements of growth by U.S. government officials are going to get back up from corporate America via their outlooks for the coming year.

Gold as of this writing is near 1268.00 USD. The precious metal is testing upper realms of its resistance and if equity markets continue to be fragile Gold should be watched carefully. Seen as a safe haven instinctively, if Wall Street and its counterparts fall further the precious metal could pick up additional speculative forces.

The German Ifo Business Climate report has already been published today and came in with a result of 110.6, better than the expectation of 110.2 but not enough to start-up a parade. The U.S. will release New Home Sales data today. Tomorrow is a bigger day of economic statistics as the U.K. will see the Preliminary GDP and the U.S. has Core Durable Goods and the CB Consumer Confidence marks.