Global markets slid further into the red overnight, with US slipping lower on weak earnings numbers.

European shares erased earlier gains, with the FTSE 100 finishing essentially flat at 6244, whilst the German DAX slump 29 points (-0.4%) to close at 7474.

U.S. stocks fell for a second day amid disappointing earnings reports and data on leading economic indicators and Philadelphia-area manufacturing that trailed estimates.

The weakness sent the Standard & Poor's 500 Index to a six-week low, with the index sliding 0.7% to 1,542 – the lowest level since March 6. The blue-chip Dow Jones index shed 81 points (-0.6%) to close at 14537.

Gold futures climbed and the spot price headed for the longest rally in four weeks on signs that demand is rebounding among consumers and investors.

Crude rose from a four-month low on signals that recent losses were exaggerated and as Spain sold more debt than planned. Oil for May delivery rose $1.05 to settle at $87.73 a barrel on the NYMEX. It was the biggest gain since March 26.

The US dollar fell against the euro, reversing an earlier gain, after a report showed manufacturing in the Philadelphia region expanded less than forecast, boosting the chances that U.S. monetary stimulus will be maintained.

There is no major local data due out for today's session.

Morning Market Update: Bears Sharpen Claws is a post from: Australian Stock Report Market Pulse Blog