European stocks continue to fall while Spanish bond yields continue to rise on the concern of the European debt crisis that will affect global growth. The Japanese Yen is continuing to rise against the Dollar which was near an 11 year high against the Euro. The Bank of Japan may be expanding easing measures in the coming months, depending on the level of the Japanse Yen, according to former central bank official, Hideo Kumano. As of 3:55 PM, Tokyo the Yen traded at 78.14 per Dollar and the Euro was at 94.20. The EUR/USD pair continues to fall, and the demand for the Euro is slowly moving down as yields from different debt markets start to increase.
In China, the IMF is pushing leaders to increase domestic consumption as China's economy continues to face downside risk. According to the IMF, in case of the debt crisis becoming worse China will try for a “balanced approach between fiscal and monetary measures”. Due to the European debt crisis limiting exports, China's economy is cooling down, however China is confident they can grow at least 7.5 percent within the year.