Daily Market Review 23 of October
Market sentiment remained on the negative side today after ratings agency Moody’s cut the credit ratings to Spain Largest region and another four other Spanish regions late Monday, citing their worsening liquidity positions and predicting that these regions are likely to ask the central government for aid in 2013.

Spain Prime Minister, Rajoy, said last week he still had not decided whether to request a sovereign bailout.

Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout. 

A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.

At the moment, the European stocks were down 0.6% this morning trade, as investors fretted about lackluster corporate results and a credit rating downgrade.

U.S. stock index futures pointed to a lower open on Tuesday, with futures for the S&P 500 down 0.75%, Dow Jones futures down 0.6% and Nasdaq 100 futures down 0.85% at 10:00 GMT

Economic Calendar:

12:30-CA-CAD-Retail Sales (MoM) (Aug)   
13:00-CA-CAD-BoC Interest Rate Decision (Oct 23)   
13:00-CA-CAD-BOC Rate Statement                   
14:00-EMU-EUR-Consumer Confidence (Oct) Preliminar   
17:00-UK-GBP-BoE's Governor King Speech               

GOLD futures were lower during European morning trade on Tuesday, testing the six-week low hit in the previous session as the U.S. dollar pushed higher after Moody’s lowered credit ratings on five Spanish regions.

Investors are also awaiting the outcome of the Federal Reserve's two-day policy meeting on Wednesday.