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month. Other metals followed suit, with silver, platinum, and palladium prices all weaker. The stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies.

Crude oil futures also continued to decline amid worries over global economic growth and falling US petrol consumption, which pushed Nymex below US$94 a barrel.

The fall in commodity prices dragged on the Australian dollar, which hit an 11-month low against the US dollar. Forex analysts at Morgan Stanley said that as commodity prices continue to decline, the Australian dollar is unlikely to get any relief and could approach its US$0,96 target shortly. The New Zealand dollar was also under pressure.

The dollar also traded higher against the euro and the yen. The US currency had been under pressure against the yen in Asian trade following some disappointing US data releases and a better-than-expected reading on Japanese growth.

Equity markets were pretty calm in comparison, with moderate declines in core regional benchmark indexes unsurprising given the recent rally that saw many global indexes reach new highs.

Citigroup pointed out in a note yesterday that global equities have now rallied more than 30 percent since the 2011 lows, but earnings per share have been flat. “While equities still look cheap compared with bonds and cash, they no longer look cheap compared with their own history,” said Citigroup.

The brokerage expects markets to make further headway supported by moderate EPS growth and dividend increases, but said that valuations imply gains will be less impressive from here on in.

Insurers put in a mixed performance. Zurich Insurance slid after the company posted a 7 percent decline in first-quarter profit. But shares in UK insurer Aviva surged after it reported an 18 percent rise in the value of new business in the first  quarter.

Trade and inflation figures for the euro zone came and went with little fuss. Data showed the region had the largest trade surplus in March since records began in 1999, while the annual rate of inflation slowed to its lowest level since February 2010 in March.

Late morning, US futures pointed to a flat open on Wall Street, where housing starts, inflation data and initial jobless claims are due. The Philadelphia Fed index will also be closely watched. — Reuters.