There is more economic data out of the US this afternoon but as usual Wall Street is choosing to disregard the positives and focus on the negatives. In the UK retailers report more pain on the high street but the FTSE's losses are so far moderate.
US new home sales out this afternoon fell less than expected but the Dow is deeper in the red, down some 130 points, or 1%, at 12,403.
After separate US data showed fuel stockpiles falling more than forecast, oil has shot up and that is intensifying pressure on a market already knocked by a fall in durable goods orders.
In the UK the losses are more modest, with the FTSE 100 just 37 points lower, a fall of 0.7%, at 5652.
With the economic gloom in America being echoed by reports in the UK, the retail sector is surprisingly resilient for a second day running.
There's a fresh raft of pessimism from big stores but a large number of retailers are higher, led by supermarket group J Sainsbury, up more than 4%.
B&Q owner Kingfisher is building on yesterday's gains, currently up 1%. It reports preliminary results tomorrow.
Further down the market, Topps Tiles is down 6.75p, or 5.5%, at 116p after the company flagged up tough markets in a trading update for the 26 weeks to March 29.
It expects to report that like-for-like revenue will show a decline of 0.5% in the UK.
"The negative economic backdrop is translating into an increasingly challenging consumer market and the board does not envisage the environment changing in the short term," said chief executive Matt Williams.
Analysts at Seymour Pierce responded with a downgrade to "hold" from "outperform" and flagged up the fact consumer confidence is at its lowest in more than a decade.
"Topps is very much at the mercy of the wider economy here, even though with a £250-£300 average project value it is not quite big-ticket. With increasing pressure on house prices, the wider consumer and, in particular, major purchases, we believe the current discount to the sector looks justified," they said in a note.
Sofa company ScS Upholstery was equally downbeat about consumer spending, telling the market at its half-year results yesterday: "This has been an extremely challenging trading period and we are under no illusions about the economic trading environment."
It said it was running the furniture business on the basis "that we are unlikely to see any upturn in economic conditions for some time."
The shares are up however, so far 4.4% higher.
