From newstraderfx:

Carry Trades Unwind as Bonds Are Bought
Global yields are down across the board, as traders concerned about further subprime problems close out their risky positions positions. Yield on the US 10y has lost 6 basis points so far today in early trading.

S&P Futures on the Sept contract extended their loss to 17 points from 14 points after the durable goods report was released. Core durables showed a decrease of -0,5% vs an expected 0.5% gain. The prior months number was revised to -0.2% from -0.4%.

European profit reports were not meeting analyst expectations and Exxon Mobile profits also fell short. There were good profit reports from Shell and Apple.

European equities have had their worst day in over 4 months so far today.