American International Group Inc
Bank Of America Corporation, considered one of the strongest and safest, slashed its dividend in half and reported that its quarterly earnings fell 68% from a year ago, which was worse than expected.

Bank Of America Corporation
The Bank of America Corporation, citing "recessionary conditions," halved its dividend on Monday and said it would sell at least $10 billion in new common stock to bolster its capital to offset rising loan losses.
It also said quarterly profit slid 68 percent, more than expected.

Wachovia Corp
Citigroup, Wells Fargo and Wachovia agreed Monday to halt all litigation for two days in the bitter war over the ailing Wachovia.

Economist Stephen Gallagher at SocGen says Fed's CP program "offers potentially more stable and much cheaper financing for companies in comparison to the strained markets over the past few weeks. Moreover, the Fed's approach is a more direct easing of credit for the markets in comparison to a rate cut that had limited chances to influence the borrowing rates outside the fed funds market."

FOMC Minutes from Sept 16 (left FF unch at 2%) show concerns about S-T funding and note mkts had marked down expected path for mon-policy. FOMC was still concerned about inflation and only some noted a policy response "could be required" if mkts eroded more. But minutes also say FOMC should remain prepared to reverse easing in a timely fashion. Bernanke's speech today is setting up for a rate ease.

Bernanke does not outright promise rate ease but text is very mkt-soothing. He says mkts are under "extraordinary stress" and this "can take a heavy toll on the broader economy if left unchecked". Says steps being taken now will go far to resolve dislocations; Fed "will continue to use the tools at its disposal to improve mkt functioning and liqudity".

"S&P broke below the 1077 Long- Term retracement level from the 2002 lows. A corrective bounce to a maximum of 1133 looks likely. See this as a selling opportunity for new lows again."

Tony Crescenzi of Miller, Tabak says Fed's announcement on CP is not a complete surprise as it was rumored on Mon. He says "Roughly $100 billion to $150 billion of commercial paper is typically brought to the market every day, and on average the commercial paper market carries maturities of 30-45 days" - thus 3m buying will extend maturities.

The greenback fell from a 14-month high versus the euro on speculation the Fed's plan will ease demand for U.S. currency funding among banks. Australia's Reserve Bank reduce its cash rate by 1 percentage point, the most since a recession in 1992, triggering speculation other countries will cut borrowing costs.
``We've seen a dramatic capitulation of risk trades in the past few days,'' said Robert Sinche, head of global currency strategy at Bank of America Corp. in New York. ``If there are signs that conditions are beginning to stabilize, then we can see people return to risk trades and the yen will weaken.''
The yen dropped from near a three- year high against the euro and slid against the dollar as the Federal Reserve's announcement that it will buy commercial paper encouraged investors to resume buying higher-yielding assets.
The U.S. central bank, invoking emergency powers, will lend against a special purpose vehicle at the targeted fed funds rate. The unit will purchase from eligible issuers three-month dollar-denominated commercial paper at a spread over the three- month overnight-indexed swap rate, according to a press release in Washington today.
``They are clearly pulling out every imaginable stop to get the credit market moving again,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto.
Fed Chairman Bernanke will speak about the economy at 17:15 GMT. The minutes from the Sept. 16 FOMC meeting will be released at 18:00 GMT.

The major indices trade near the unchanged mark as the market has been unable to find concerted direction. The S&P 500 is down 28% this year, and is down 33% from its October 2007 52-week high.
European markets are posting gains, with London's FTSE up 0.9%, France's CAC up 1.4% and Germany's Dax up 0.2%. In Asian trading, Japan's Nikkei fell 3.0%, while Hong Kong's Hang Seng was closed for a holiday.

RbOS now down 41% & lowest since late 1993. FTSE-100 has lost 50 pts in last 30 mins and is now up 7pts (+0.16%)

Cable breaks above $1.7600, moves on to retest earlier Asian highs at $1.7647. Offers seen placed to $1.7650, which at writing look to have capped recent recovery effort again at $1.7647. Rate currently trades around $1.7638. Above $1.7650 and rate can push on toward $1.7690/00.

RBC analyst TJ Marta says Fed's CP action "should largely eliminate the blockage that we had expected would continue through yearend if policymakers did not act. This action will help mitigate the risks of an even sharper deterioration in the economy."

The S&P 500 gives up its opening gains and falls into negative territory. Weakness in financials (-3.4%) is acting as the main drag.
Bank of America (BAC 28.07, -4.16) is down 13% after last night preannouncing third quarter earnings that fell short of expectations. BofA, the second largest U.S. financial firm by market cap after JPMorgan Chase (JPM 42.66, -1.34), is cutting its quarterly dividend by 50% to $0.32 and plans to raise $10 billion in a common stock offering. BofA made the moves to shore up its capital due to the current economic environment.
In other financial news, Wachovia (WB 5.75, -0.03), Citigroup (C 16.92, -0.49), and Wells Fargo (WFC 33.38, -0.31) announced last evening they have agreed to halt all litigation. The dispute stems from Citi's allegations that Wachovia violated exclusivity talks by agreeing to merge with Wells Fargo. Citi had filed a suit claiming $60 billion in damages from Wachovia and Wells Fargo.

Iran state TV says plane forced to land in Iran was Hungarian. WTI Nymex crude oil spike to $92.99 in knee-jerk reaction and also supported by Fed annoumcement to backstop the U.S commercial paper market. Some traders also cite talk of an OPEC production cut earlier, which helped underpin crude oil prices. WTI Nymex crude oil is at $91.25, up $3.44.

The stock market gets off to a positive start, lifted by news that the Fed is taking action to address liquidity issues in the corporate short-term borrowing market. Still, early gains do not come close to making up Monday's plummet of nearly 4%.
The Fed created a Commercial Paper Funding Facility (CPFF), which will provide a liquidity backstop for the strained commercial paper market. The Fed will purchase three-month unsecured and asset-backed commercial paper from eligible issuers. The Fed did not give a dollar amount on size of the CPFF. The commercial paper market, which banks and U.S. corporations rely on for short-term borrowing, has been under pressure as investors flocked to the safety of Treasuries and away from money market funds.
As stocks advance, Treasuries decline as news of the CPFF encourages investors to take risks. The 10-year note is down 28 ticks, sending its yield up to 3.56%. The 3-month bill yield climbed 26 basis points to 0.75%.

European equity bourses are up by around 100 pts after announcement from Fed to make purchase of US commercial papers through a special unit. CAC-40 is at 72pts, Xetra-DAX is up 14pts and FTSE-100 is up 101pts.

Futures go on a sharp retreat : (S&P futures vs fair value: -7.20. Nasdaq futures vs fair value: -12.80.), and now suggest a negative start, due to disappointment that a Fed announcement on its Term Auction Facility did not include more measures.
Crude oil prices are rallying, up 3.5% to $90.90 per barrel as the dollar falls 0.8%. Looking ahead, Minneapolis Fed President Stern will speak on financial shock at 15:15 GMT AM ET and Fed Chairman Bernanke will speak about the economy at 17:15 GMT. The minutes from the Sept. 16 FOMC meeting will be released at 2:00 PM ET, followed by consumer credit for August at 18:00 GMT . After the close, Dow component Alcoa (AA) kicks off third quarter reporting season.
Bank of America on Monday reported a 68% plunge in third-quarter profit, chopped its dividend in half and announced plans to sell off $10 billion worth of stock.

Matt Van Dyckhoff of Brown Brothers Harriman says there has not been such a weekly decline in the euro, since the move higher in dollar-Deutsch market in 1992 (DM fell). He looks for the pair to test $1.3300 and sees scope for euro-yen to see "an extended move to sub Y130." On the day, the euro fallen from a high of $1.3675 to a low of $1.3471 - the pairs holds at $1.3525 currently.

"Global GDP growth is expected to hover around zero over the three quarters from 3Q08 to 1Q09, similar to the performance recorded in 2001." EM mkts are sharply eroding, they say.

The yen fell from a three-year high against the euro after the Reserve Bank of Australia lowered interest rates by the most since 1992, fueling speculation central banks plan a series of cuts to ease a financial crisis.
The yen was little changed near a six-month high versus the dollar as Australian policy makers slashed borrowing costs by a full percentage point, double the reduction forecast by economists. The euro rebounded after its biggest one-day drop against the yen since the common European currency's 1999 debut as the region's stocks and U.S. index futures rose.
``There is a degree of optimism that we will see coordinated rate cuts, which is increasing risk appetite and weighing on the yen,'' said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi Ltd. ``In the near term, if these drastic steps do come to fruition, then we could see a drop in the recent yen gains, which have been excessive.''
The RBA lowered its overnight cash rate target to 6 percent from 7 percent, adding to last month's quarter-point reduction. Economists surveyed by Bloomberg News expected a cut to 6.5 percent. The Bank of Japan today left its benchmark rate unchanged at 0.5 percent.
The likelihood the world's largest economies are on the brink of a recession is raising speculation central banks will cut interest rates to revive growth. The Bank of England meets on Oct. 9 to set borrowing costs, a day before finance ministers and central bankers from the Group of Seven nations gather in Washington to discuss the deepening credit-market crisis that has stalled bank lending.
``The Bank of England has been really resisting it for a long time but now they've got to go'' for lower rates, said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. ``The tide is certainly turning toward rate cuts that weren't on the agenda even a couple of weeks ago.''
Gains in the euro may be limited on speculation European authorities will fail to come up with a joint rescue plan for the region's beleaguered financial system. The U.S. government has earmarked $700 billion to buy distressed assets from lenders following the collapse of banks including Lehman Brothers Holdings Inc.
``Let's focus on Europe and who's going to fail and how are they going to build it up,'' said Joseph Tan, chief economist for Asia at Credit Suisse Private Banking in Singapore. ``I wonder if they can come together and form a comprehensive package. The euro is negative against the dollar.''

EUR/USD after growth at the Asian session, the pair is consolidated within the limits of $1,3515-$ 1,3620. Offers $1.3590/00, bids $1.3515/10.

Extends recovery, off earlier lows of $1.7322, currently trading above $1.7460 but seen meeting resistance from offers in the current area. Stronger offers noted in the area between $1.7480/85 ( 50% $1.7645/1.7320). A break above here to open a move on toward $1.7520/25 ( 61.8%). Bids now reported in place at $1.7375/70, $1.7320 and $1.7285/80.

The yen fell from a three-year high against the euro after the Reserve Bank of Australia lowered interest rates by the most since 1992, fueling speculation central banks plan a series of cuts to ease a financial crisis.
The yen was little changed near a six-month high versus the dollar as Australian policy makers slashed borrowing costs by a full percentage point, double the reduction forecast by economists. The euro rebounded after its biggest one-day drop against the yen since the common European currency's 1999 debut as the region's stocks and U.S. index futures rose.
``There is a degree of optimism that we will see coordinated rate cuts, which is increasing risk appetite and weighing on the yen,'' said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi Ltd. ``In the near term, if these drastic steps do come to fruition, then we could see a drop in the recent yen gains, which have been excessive.''
The RBA lowered its overnight cash rate target to 6 percent from 7 percent, adding to last month's quarter-point reduction. Economists surveyed by Bloomberg News expected a cut to 6.5 percent. The Bank of Japan today left its benchmark rate unchanged at 0.5 percent.
The likelihood the world's largest economies are on the brink of a recession is raising speculation central banks will cut interest rates to revive growth. The Bank of England meets on Oct. 9 to set borrowing costs, a day before finance ministers and central bankers from the Group of Seven nations gather in Washington to discuss the deepening credit-market crisis that has stalled bank lending.
``The Bank of England has been really resisting it for a long time but now they've got to go'' for lower rates, said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. ``The tide is certainly turning toward rate cuts that weren't on the agenda even a couple of weeks ago.''
Gains in the euro may be limited on speculation European authorities will fail to come up with a joint rescue plan for the region's beleaguered financial system. The U.S. government has earmarked $700 billion to buy distressed assets from lenders following the collapse of banks including Lehman Brothers Holdings Inc.
``Let's focus on Europe and who's going to fail and how are they going to build it up,'' said Joseph Tan, chief economist for Asia at Credit Suisse Private Banking in Singapore. ``I wonder if they can come together and form a comprehensive package. The euro is negative against the dollar.''

Resistance 3: Y104.50
Resistance 2: Y103.90
Resistance 1: Y103.30
Current price: Y101.93
Support 1: Y101.30
Support 2: Y100.00
Support 3: Y99.70

Comments: The yen also declined from a six-month high versus the dollar as Australian policy makers slashed borrowing costs by a full percentage point, double the reduction forecast by economists. Asian stocks and the Australian dollar pared losses as investors bet slides in benchmark interest rates will revive confidence in higher-yielding assets. Resistance is presented by levels FIBO from falling Y106,15-Y100,20: Y103,30 (38,2 %, and also level Y103,40 is area of Sep 30,16 and July 16 lows, and area of a session high), Y103,90 (50,0 %), Y104,50 (61,8 %, also area of Friday's low). The nearest support is presented by hourly lows on Y101,30. Below there is a chance of falling to Y100,00/20 (Apri 10 low and yesterday's low).

Resistance 3: Chf1.1680
Resistance 2: Chf1.1600
Resistance 1: Chf1.1500
Current price: Chf1.1423
Support 1: Chf1.1420
Support 2: Chf1.1275
Support 3: Chf1.1220

Comments: The pair has slightly receded from the reached high, but continues to remain within the limits of the ascending channel which top border acts as strong area of resistance. As intermediate resistance acts Chf1,1500 and Chf1,1600. As the nearest support acts the area of Sep 11 and Oct 2 high, and also area of a session low on Chf1,1420. Below loss of a rate can will increase up to Chf1,1275 (yesterday's kow) and further to Chf1,1220 (Friday's low).

Resistance 3: $1.8000
Resistance 2: $1.7850
Resistance 1: $1.7650
Current price: $1.7435
Support 1: $1.7310
Support 2: $1.7270
Support 3: $1.7230

Comments: The dollar was corrected from the reached levels against pound, but as a whole the descending trend remains in force. Support is located in the field of a session low on $1,7310, stronger level is the area of $1,7270. Below possible falling to March 2006 low $1,7230. Resistance is noted on $1,7650 (the session high, and also a level of 23.6 % FIBO of falling $1,8670-$ 1,7330), further is located a level $1,7850 (32,8 %). Above the purpose of growth can become $1,8000 (50,0 %).

-- Previous rise in oil, commodities has hit economies
-- We are seeing a global crisis of enourmous proportions.

-- Govt action needed in short-term to prevent failures.

Resistance 3:$1.3980
Resistance 2: $1.3780
Resistance 1: $1.3680
Current price: $1.3565
Support 1: $1.3450
Support 2: $1.3360
Support 3: $1.3260

Comments:The euro has receded from 13-month's low against dollar. Closest resistance eyed in the area of a yesterday's high/Friday's low on $1,3680/00. Further goes $1,3780 (Fibo 23.6 % of decrease $1,4870-$ 1,3440) and $1,3980 (38,2 %). As the nearest support acts the area of a yesterday's low on $1,3450/40, further down is possible falling to $1,3360 (August 2007 low) and $1,3260 (June 2007 low).

EUR/USD $1.3600, $1.3650
USD/JPY Y102.20, Y103.50, Y101.40, Y105.00

The yen fell from a three-year high against the euro after the Reserve Bank of Australia lowered interest rates by the most since 1992, fueling speculation central banks plan a flurry of cuts to ease a financial crisis.
The yen also declined from a six-month high versus the dollar as Australian policy makers slashed borrowing costs by a full percentage point, double the reduction forecast by economists. Asian stocks and the Australian dollar pared losses as investors bet declines in benchmark interest rates will revive confidence in higher-yielding assets.
The RBA lowered its overnight cash rate target to 6 percent from 7 percent, adding to last month's quarter-point reduction. Economists surveyed by Bloomberg News expected a cut to 6.5 percent. The Bank of Japan today left its benchmark rate unchanged at 0.5 percent.
The Bank of England meets on Oct. 9 to set borrowing costs, a day before finance ministers and central bankers from the Group of Seven nations gather in Washington to discuss the deepening credit-market crisis that has stalled bank lending.
Gains in the euro may be limited on speculation European authorities will fail to come up with a joint rescue plan for the region's beleaguered financial sector. The U.S. government has earmarked $700 billion to buy distressed assets from lenders following the collapse of banks including Lehman Brothers Holdings Inc.
European finance ministers meet at 9:30 a.m. in Luxembourg today. The German government and the country's banks and insurers agreed on a 50 billion euro ($67.9 billion) rescue of Hypo Real Estate Holding AG on the weekend after an earlier bailout plan faltered. BNP Paribas SA, France's biggest bank, agreed to take over Belgian units of Fortis after a government rescue of the lender failed.
The prospect of a global economic slump has caused investors to increase bets that the Federal Reserve and the European Central Bank will cut interest rates.
German factory orders probably fell 4.7 percent in August from a year earlier, according to the median forecast of economists. The Economy Ministry is due to release the report today.

EUR/USD after growth at the Asian session, the pair is consolidated within the limits of $1,3515-$ 1,3620.
GBP/USD having established a session high on $1,7650, the rate has receded back in area $1,4430.
USD/JPY after unsuccessful testing the nearest resistance which is presented by level Y103,30, the pair was consolidated within the limits of Y102,40-Y103,30.

At 1000GMT Germany releases August manufacturing orders data.
UK data at 0830GMT sees manufacturing output and industrial production for August.
At 1800GMT FOMC Minutes (Sep 16) releases.

Japan's benchmark stock indices ended Tuesday's see-saw session sharply lower, although off of the day's worst levels. The Nikkei 225 was down over 5% in early trade, before rallying in the wake of the RBA's 100 bps cut, to stand just 1% lower. However, further weakness into the close saw the Nikkei close out 317.19 points, or 3.03%, lower at 10155.90. The broader-based TOPIX was down 21.44 points at 977.61.

Japan's stocks dropped, driving the Topix index below 1,000 points for the first time since December 2003, after the global credit crisis deepened in Europe and the yen jumped, cutting the value of overseas sales.
Mitsubishi UFJ Financial Group Inc. plunged 9.2 percent after worsening credit conditions forced new bailouts of Hypo Real Estate Holding AG and Fortis. Nintendo Co., which gets 80 percent of its sales from overseas markets, lost 8 percent as the yen surged to its highest versus the euro since May 2006. Nippon Steel Corp. sank 7.8 percent on concern demand will wane.
The Topix fell 48.92, or 4.7 percent, to close at 999.05 in Tokyo. Only 93 of 1,714 members included in the index rose. The Nikkei 225 Stock Average declined 465.05, or 4.3 percent, to 10,473.09.
Mitsubishi UFJ, Japan's largest listed bank, lost 9.2 percent to 806 yen, the steepest plunge since October 2003, while Resona Holdings Inc., the fourth biggest, plummeted 9.5 percent to 119,800 yen.
Chiba Bank Ltd. plummeted 13 percent, the most since October 1987, to 473 yen. The regional lender slashed its full-year earnings target on Oct. 3 by 64 percent, saying rising bankruptcies among developers prompted the bank to boost its loan-loss provision.
Nintendo, the world's biggest maker of handheld game players, sank 8 percent to 33,800 yen in Osaka trading, extending its losing streak to a ninth day, the longest since December 2002. Sony Corp., the world's second-biggest maker of consumer electronics, tumbled 6.6 percent to 2,810 yen.
Nippon Steel, the world's second-biggest maker of the metal, dived 7.8 percent to 319 yen. JFE Holdings Inc., Nippon Steel's biggest Japanese rival, plunged 7.2 percent to 2,625 yen. A gauge of steelmakers has lost half its value so far this year as the credit crisis and slowing economy dragged down U.S. auto sales.
Nippon Steel also declined on concern it will post losses on stock it holds in smaller steelmakers such as Sanyo Special Steel Co., which sank 15 percent to 376 yen today.
Komatsu Ltd., the world's second-biggest maker of earthmoving equipment, dropped 9.3 percent to 1,252 yen. Hitachi Construction Machinery Co. declined 8.1 percent to 1,814 yen.
Japan government reports have shown industrial production fell at the fastest pace in five years in August, household spending dropped for a sixth month and the jobless rate reached a two-year high.
Developers fell after UBS AG said real estate financing will weaken. NTT Urban Development Corp. tumbled 16 percent to 102,200 yen, the worst slump since it went public in November 2004. Mitsui Fudosan Co., Japan's biggest real-estate company, lost 5.9 percent to 1,761 yen, and Mitsubishi Estate Co. , the second largest fell 4.5 percent to 1,860 yen. Sumitomo Realty & Development Co., the third biggest, slid 5.9 percent to 1,934 yen. UBS cut its ratings on the companies to ``neutral'' from ``buy.''
Sumitomo Metal Mining Co., Japan's biggest nickel producer, sank 7.1 percent to 853 yen, having lost 30 percent of its value in nine days. Nippon Mining Holdings Inc., the nation's largest copper producer, lost 7 percent to 348 yen.
On Oct. 3, nickel for three-month delivery slid 1 percent to the lowest since March 2006 in London. Copper for December delivery lost 4 percent in Shanghai today.

Stocks tumbled around the world, the euro fell the most against the yen since its debut and oil dropped below $90 a barrel as the yearlong credit market seizure caused bank bailouts to spread. Government bonds rallied.
Today's sell-off erased about $2.2 trillion from global equities after the German government was forced to bail out Hypo Real Estate Holding AG, overshadowing the $700 billion U.S. Treasury plan to revive credit markets. The euro weakened 6.4 percent against the yen, the most since 1999.
Two-year Treasury yields plunged 0.14 percentage point to 1.45 percent as investors sought the relative safety of government bonds. The MSCI World Index slid 5.7 percent as every industry fell at least 4 percent. Rio Tinto Plc, the world's second-biggest aluminum producer, fell 15 percent and UBS AG, the largest Swiss bank, lost 13 percent.
The Dow dipped below 10,000 for the first time since October 2004. Europe's Stoxx 600 sank 7.6 percent.
National benchmark indexes fell in all 18 western European markets. London's FTSE 100 dropped 7.9 percent, the most in two decades. Russia's Micex plunged 19 percent, led by OAO Gazprom's 21 percent decrease. The MSCI Asia Pacific Index lost 4 percent, as Mitsubishi UFJ Financial Group Inc. and Macquarie Group Ltd. retreated more than 9 percent.
A 5.4 percent tumble in Brazil's Bovespa Index and a 10 percent retreat in Indonesia's Jakarta Composite Index pushed the MSCI Emerging Market Index down 9.5 percent, the steepest since it began.
UBS, the European bank worst hit by credit crisis, lost 3.08 to 20.90 francs. The bank's earnings will be ``challenged for some time,'' and UBS may write down $3.1 billion in the third quarter, Oppenheimer & Co. analyst Meredith Whitney wrote in a note to clients. The Swiss bank has posted $44 billion in losses, according to data compiled by Bloomberg.


On Monday, stocks plummeted across the world on global financial and economic concerns, although late-session buying interest helped U.S. stocks pare more than half of their losses in the final hour of trade.
The Dow, Nasdaq and S&P 500 fell 3.5%, 3.8% and 4.3%, respectively, all settling at multi-year lows. Still, the end result was a huge improvement from the session's worst levels, when the Dow, Nasdaq and S&P 500 were down 7.8%, 8.8% and 8.3%, respectively.
Helping stocks pare their losses was a headline that France proposed an emergency G8 meeting on the financial crisis, which increased speculation that global central banks may make a coordinated intermeeting rate cut.
Overseas equity markets fared even worse than the U.S., with the DJ World Excluding U.S. Index falling 7.3% as Europe fell 7.6%
The selling in Europe was driven over concerns that more bailouts of European financial institutions are needed after Germany's government stepped in to prevent the collapse of property lender Hypo Real Estate. In addition, interbank lending rates rose in European currencies as banks remain reluctant to lend to each other.
Global growth concerns were prevalent in commodity trading, with the CRB Index plunging 5.2%. Oil prices dropped 5.0% to $89.15 per barrel.
Meanwhile, risk averse investors bid up the prices of Treasuries in a flight-to-quality trade. The 10-year note climbed 36 ticks sending its yield down to 3.47%. On a related note, gold, which is considered a safe-haven, rallied 4.4% to $865.50 per ounce.
Weakness in Europe prompted a large 1.5% rally in the dollar. The euro fell 2.2% to $1.35 and the pound declined 1.7% to $1.74.
In an attempt to improve liquidity and shore up confidence, the Fed announced this morning that it is planning to double the outstanding Term Auction Facilities (TAF) balances to $900 billion. The TAFs aim to improve liquidity by allowing depository institutions to borrow from the Fed using the same collateral that is accepted at the discount window. The Fed will also start paying interest on depository institutions' required and excess reserve balances. The announcement failed to lift the stock market.
The sharp declines in global stock markets induced traders to raise their bets on the size of a rate cut at the Oct. 29 FOMC meeting, with increased speculation that there will be a coordinated global central bank intermeeting rate cut. Fed funds futures suggest a 52% chance that the fed funds rate will be cut by 75 basis points.

Resistance 3: Y104.50
Resistance 2: Y103.90
Resistance 1: Y103.30
Current price: Y102.93
Support 1: Y102.60
Support 2: Y102.00
Support 3: Y100.00
Comments: The yen also declined from a six-month high versus the dollar as Australian policy makers slashed borrowing costs by a full percentage point, double the reduction forecast by economists. Asian stocks and the Australian dollar pared losses as investors bet slides in benchmark interest rates will revive confidence in higher-yielding assets. Resistance is presented by levels FIBO from falling Y106,15-Y100,20: Y103,30 (38,2 %, and also level Y103,40 is area of Sep 30,16 and July 16 lows, and area of a session high), Y103,90 (50,0 %), Y104,50 (61,8 %, also area of Friday's low). The nearest support is presented by area of May's lows on Y102,60. Below there is a chance of falling to Y102,00 and further to Y100,00/20 (Apri 10 low and yesterday's low).

Resistance 3: Chf1.1680
Resistance 2: Chf1.1600
Resistance 1: Chf1.1500
Current price: Chf1.1433
Support 1: Chf1.1420
Support 2: Chf1.1275
Support 3: Chf1.1220
Comments: The pair has slightly receded from the reached high, but continues to remain within the limits of the ascending channel which top border acts as strong area of resistance. As intermediate resistance acts Chf1,1500 and Chf1,1600. As the nearest support acts the area of Sep 11 and Oct 2 high, and also area of a session low on Chf1,1420. Below loss of a rate can will increase up to Chf1,1275 (yesterday's kow) and further to Chf1,1220 (Friday's low).

Resistance 3: $1.8000
Resistance 2: $1.7850
Resistance 1: $1.7650
Current price: $1.7535
Support 1: $1.7410
Support 2: $1.7340
Support 3: $1.7300
Comments: The dollar was corrected from the reached levels against pound, but as a whole the descending trend remains in force. Support is located in the field of a session low on $1,7410, stronger level is the area of a yesterday's low on $1,7340. Below possible falling to $1,7300. Resistance is noted on $1,7650 (the session high, and also a level of 23.6 % FIBO of falling $1,8670-$ 1,7330), further is located a level $1,7850 (32,8 %). Above the purpose of growth can become $1,8000 (50,0 %).

Resistance 3:$1.3980
Resistance 2: $1.3780
Resistance 1: $1.3680
Current price: $1.3600
Support 1: $1.3550
Support 2: $1.3360
Support 3: $1.3260
Comments:The euro has receded from 13-month's low against dollar. As resistance the area of a yesterday's high/Friday's low of a minimum on $1,3680/00 acts. Further Fibo on $1,3780 (23.6 % of decrease $1,4870-$ 1,3440) and $1,3980 (38,2 %). As the nearest support acts the area of a yesterday's low on $1,3550, further is possible falling to $1,3360 (August 2007 low) and $1,3260 (June 2007 low).

High Low Close
EUR/USD 1.3677 1.3441 1.3484
USD/JPY 105.16 100.21 101.52
GBP/USD 1.7697 1.7334 1.7430
USD/CHF 1.1494 1.1278 1.1481

EUR/JPY 143.73 135.02 145.09
EUR/GBP 0.7798 0.7698 0.7733
GBP/JPY 185.77 174.06 177.02
GBP/CHF 2.0129 1.9774 2.0017

Change % Change Last
Nikkei -465.05 -4.25% 10,473.09
Topix -48.92 -4.7% 999.05
FTSE -391.06 -7.85% 4,589.19
DAX -410.02 -7.07% 5,387.01
CAC -368.77 -9.04% 3,711.98
Dow -369.88 -3.58% 9,955.50
NASDAQ -84.43 -4.34% 1,862.96
S&P -42.34 -3.85% 1,056.89
10yr Note -2.1800 -0.598% 3.426%
NYMEX Crude Oil -6.07 -6.47% 87.81
Gold +33.00 +3.96% 866.20

03:30 Japan BoJ Interest Rate Decision 0.50% 0,50%
03:30 Australia RBA Interest Rate Decision 6,00% 7,00%
05:00 Japan Leading Economic Index (Aug) 91,4
05:00 Japan Coincident Index (Aug) 103.5
08:30 UK Manufacturing output (August), Y/Y -1,4%
08:30 UK Manufacturing output (August) -0,2% -0,2%
08:30 UK Industrial production (August), Y/Y -1.9%
08:30 UK Industrial production (August) -0.2% -0.4%
10:00 Germany Factory Orders n.s.a. (YoY) (Aug) -0,7%
10:00 Germany Factory Orders s.a. (MoM) (Aug) -1,7%
18:00 USA FOMC Minutes (Sep 16)
19:00 USA Consumer Credit (Aug) $4,56В
23:01 UK Nationwide Consumer Confidence (Oct) 52