The drop in global share prices, and consumer prices resulted in dovetailing consumer confidence in the economy.

The US dollar fell 0.88 per cent to JPY86.68 (*S$1.37), a seven-month low.

According to the US Labour Department, consumer prices fell in June for the third straight month, due to lower energy costs. The consumer price index fell 0.1 per cent in June after slipping 0.2 per cent in May. Energy prices dipped 2.9 per cent.

The fall in consumer prices comes a day after the reported fall in wholesale prices. These falling prices raise fears of a deflationary spiral that could lead to long term economic depression.

General Electric Co. (GE), the largest conglomerate in the US, Bank of America Corp and Citigroup Inc, top US financial groups, all reported drops in their quarterly revenues from the same period in 2009. For the week, GE shares fell 4.6 per cent to US$14.55 (*S$19.98), Bank of America dropped 9.2 per cent to US$13.98, and Citigroup lost 6.3 per cent to US$3.90.

Consumer confidence dropped from a two and a half year high, with worries about employment and income. The consumer sentiment index fell from 76.0 to 66.5 in June.

*Exchange rate correct as at 19 July 2010