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US markets slide as crude hits yet another lifetime high above $ 144/bbl in yesterday’s trading session. Dow Jones end down 166.7 points at 11215.5, slips 220 points from day’s high. Nasdaq ends down 53.5 points at 2251.5, slips 66 points from day’s high. Dow Jones down nearly 20% from its October high. Asian markets open in the red. Taiwan down 1.8%, Shanghai down 1.5%, Kospi down 1.3%, Hang Seng, Straits Times down 1%. In emerging markets, Brazil was down 3.6%, Russia was up 0.57% and Chile was down 3.16%. CBOE VIX was up 9.6% at 25.92.

Commodities/ Currencies:

Crude oil futures gain over $ 2 at $ 144/bbl as US stockpiles unexpectedly dropped. Russian President Dmitry Medvedev said that oil prices would climb to $ 150/bbl. Gold gains nearly $ 3 at $ 945/oz. Importantly, traders expect interest rate hike by ECB today which will lead crude to gain further as dollar will weaken post that.

More Downgrades:

Oppenheimer cut earnings estimates for Merrill Lynch. GM stock tumbles to lowest level since 1954 after Merrill Lynch said that the company needs to raise $ 15 billion and faced with possibility of bankruptcy. ((Remember, GM announced better-than-feared monthly sales results day before and that helped US markets to gain))

US Economic Data:

Factory orders in May up 0.6% Vs expectation of 0.5% increase

Data To Watch:

ECB Interest Rate Decision (ECB President Trichet has said the bank may raise its key interest rate by 25 bps to 4.25% to curb inflation)
US Employment Situation
US ISM Non-Manufacturing Data
US Jobless Claims

Indian ADRs:

Patni up 6.5%, HDFC Bank up 1.7%
Tata Motors down 2.2%