[DannyBly]

The Consumer Confidence Index fell to a 5 year low, amid soaring inflation reflected in rising gasoline and food prices - and fears of a weakening jobs market.

Reduced consumer confidence leads naturally to reduced consumer spending. Consumer spending accounts for over two thirds of the US economy. The negative release triggered selling in the stock market.

The Standard and Poor/Case Schiller Home Price Index showed that housing Prices dropped in February at the fastest rate ever.

The employment market has been weakening - the labor department reported a loss of 80,000 jobs in March and is expected to show another loss of 65,000 in the April Employment Report this Friday.

The recent strength in the US Dollar contributed to the weakness in crude making it a less effective hedge against inflation.

The Federal Reserve is widely expected to cut rates by 25 basis points tomorrow and to then cease the rate cuts for the rest of the year.