On Friday, the Nikkei index managed to make back some of the losses from the previous session when the global markets had tumbled. Ahead of the weekend, this was undoubtedly due to short-covering and also some "bargain hunting."
Commodities across the board are finding it harder to try to establish support as currencies in Europe continue to get crushed. Not only has the euro, which has been hit by the ECB's quantitative easing but the British pound Sterling that has been rattled with the possibility of Scottish independence.
Data showed that the U.S. economy contracted by 1% during the first quarter of the year. Consumer spending declined in April, the first decline in a year even though disposable income rose. The overall economic picture remains bleak.