Stock markets around the world continued to tumble overnight as capital fled risk markets for defensive havens. The NIKKEI, FTSE,  and Hang Seng all fell about 1.0 percent, while the Dax and Australia fell 0.6 percent.  US index  futures are flat this morning. 

Political turmoil around the world on a number of fronts has traders running for shelter. The US Dollar is falling while gold is taking a run at $1,300 and JPY is soaring.  Other majors are bouncing back at a more moderate pace.

Uncertainty in a number of fronts is impacting sentiment.  Although the terrorist attacks in Spain have topped the headlines overnight, strife is Washington is likely having a bigger impact on trading. Traders appear to be increasingly concerned that strife between the White House and various factions in Congress could make it harder to put through a pro-growth agenda and make it harder to reach deals on the budget or the debt ceiling, raising the risk of a government shutdown this fall.

Heading towards the weekend, traders may take a more cautious approach, especially with the impact of Monday’s solar eclipse on the market unknown.  North Korea may also flare up again with the US and South Korea starting annual joint exercises on Monday. 

With US earnings season over, politics may capture even more attention.  It's a light day for economic news. Canada inflation is out This morning.  This afternoon's drilling data could impact oil trading as it could impact US production growth estimates.

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