American International Group, Inc
The New York Federal Reserve is lending up to $37.8B to the struggling insurance giant. In exchange, AIG is giving the N.Y. Fed investment-grade, fixed-income securities that it had previously lent out to other institutions for a fee.

International Business Machines
The tech giant announced better-than-expected third-quarter earnings ahead of schedule, beating Wall Street's profit estimate and reaffirmed its full-year 2008 guidance.

National City Corporation
The Wall Street Journal reported that potential buyers for the struggling bank include PNC Financial Services Group Inc. and Bank of Nova Scotia

American Eagle Outfitters Ne
September sales at stores open at least a year fell 6% from a year ago. Analysts surveyed by Thomson Reuters estimated a drop of 5%. Total sales for the five weeks ended Oct. 4 increased 3% to $229.2M.

The yen fell the most in three weeks against the euro as a flurry of central bank interest-rate cuts helped revive investors demand for higher-yielding assets funded in Japan.
Japan's currency also tumbled versus the U.S., Australian and New Zealand dollars after equities in Asia and Europe rebounded. The Brazilian real rose for the first time this month, one day after its central bank drew on their foreign reserves to defend the currency.
``Some of the trades that had on during the chaos are subsiding,'' said Matthew Kassel, director of proprietary trading at ING Financial Markets LLC in New York. ``Some types of commitment to strong coordinated actions should help improve sentiment. We need a few more days like today to return to some sort of normalcy in the market.''
The advance of high-yielding currencies today is a ``dead cat bounce,'' said John Taylor, chairman of FX Concepts Inc., a New York firm that manages $14.5 billion in currencies. ``We probably have one more selling climax to come in the near term, and then we should have a longer rally.''
Investors are reluctant to buy the yen before Group-of- Seven ministers meeting tomorrow as the currency's gain may be ``starting to breach the comfort zone'' of the officials, said Akio Shimizu, chief manager of foreign-exchange trading in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan's largest publicly traded bank.
G-7 finance ministers and central bankers will meet for two- days in Washington to discuss the financial crisis, which has already led to bank bailouts in most of the member nations.

Rainer Sartoris, economist at HSBC Group - "Germany is a very export-oriented country, and our trade partners are not doing very well. The U.S. economy is going badly, as well as the UK. Major euro zone economies, such as Spain, France and Italy also have problems."

Howard Archer, chief economist at Global Insight- "House prices seem poised to fall substantially further as the fundamentals remain largely negative. Credit conditions remain extremely tight and this continues to exert upward pressure on many mortgage rates and limit the amount of mortgages available."

Oil is taking cue from reversal in stocks following markets rumours that Mitsubishi UFJ have walked away forom the Morgan Stanley deal, say traders. WTI Nymex crude oil is at $87.44, down $1.50.

Banking and mining stocks leading the charge higher after hitting 5-year lows the previous session. Dexia is a notable gainer after the governments of France, Belgium and Luxembourg agreed to provide a guaranteed loan, so it can continue to borrow. HBOS and RBS are higher after UK government bank rescue package announced Wednesday. CAC-40 is up 92pts (+2.62%), Xetra-DAX is up 74pts (+1.50%) and FTSE-100 is up 68pts (+1.57%).

The upbeat bias present in early action has faded. The three major indices were seeing strong gains, but their advance is quickly reversing.
Still, the Nasdaq is posting a healthy advance, thus far. Its gain is being helped by strength in large-cap tech names, like Microsoft (MSFT 23.62, +0.61) and Apple (AAPL 93.89, +4.10). Both stocks hit new 52-week lows in the previous session.

Economists at RDQ "Although the lingering effects of the hurricanes may still be distorting these data somewhat, the trend in both initial claims and continuing claims points to a worsening of job losses and rising unemployment. The recession appears to be deepening at the beginning of the fourth quarter."

The Dow and S&P 500 were at record highs nearly one year ago. Respectively, they are currently down 34% and 36% from those highs.
Year-to-date, the Dow is down around 29% and the S&P 500 is down 32%. Today, both indices were up more than 1% in the early going.
Financials have seen the worst losses of any economic sector. It is more than 55% off its high and down more than 45% this year. Participants will be keeping a close eye on the sector this session now that the ban on short-selling has been lifted. The sector had been a primary focus of short sellers as traders bet on falling stock prices of banks and other financial companies experiencing mounting losses. Financials are currently up 2.1%.

Pullback from earlier rally highs around $1.3784, found support around $1.3660, with rate currently trading around $1.3690. Bids seen placed between $1.3680/70, more toward $1.3640. Offers now seen placed from around $1.3745, with interest extending to $1.3760. A break above here to open a move back toward earlier rally highs at $1.3784.

Stock futures continue to point to a higher open, holding onto earlier gains after the government reported claims for initial unemployment came in just slightly worse than expected.


A surprise report from IBM also helped prop up futures, as did a rally in European markets.
On Wednesday, IBM surprised investors by releasing its quarterly results earlier than expected.
Big Blue reported a 20% jump in third-quarter profit to $2.05 a share, handily topping analyst estimates by 4 cents a share. IBM also reaffirmed its full-year outlook. Shares of IBM rose nearly 5% in premarket trading.
To help bolster the markets, the Bush administration is considering taking ownership stakes in certain U.S. banks, as part of the $700 billion bailout package that was approved last week, according to the Associated Press.
Also, the New York Federal Reserve said late Wednesday that it is lending up to $37.8 billion to AIG, just three weeks after the Fed extended an $85 billion taxpayer-funded credit line to the troubled insurance giant.
Meanwhile, credit markets remain tight as lenders stay wary of taking on any unnecessary risk. Libor, the overnight bank lending rate, slipped to the still-high 5.09% from the previous rate of 5.38%, according to Bloomberg.com data. The 3-month Libor rate rose to 4.75% from 4.52%.
The price of oil traded within a narrow range, dropping 19 cents a barrel to $88.76.

Economist Steve Wood at Insight Economics says initial claims retreated but continuing claims "jumped to their highest level in nearly 5 years. This is an indication that hiring has weakened significantly. These data suggest another large decline in employment in October with the unemployment rate remaining high."

Robust emerging Asian economies stabilising global economy
Need coordinated response of EU states
Faster inflation slowdown likely if oil tame, no 2nd-round effect
Sees options to create European banking supervision

The yen had its biggest decline against the euro in almost eight years as a flurry of central bank interest-rate cuts helped arrest a slump in stocks, bolstering demand for higher-yielding assets funded in Japan.
Japan's currency also tumbled versus the U.S., Australian and New Zealand dollars as equities in Asia and Europe rebounded. The pound dropped versus the euro on speculation more interest-rate cuts are needed to avert an economic slump.
``The yen declines reflect greater stability in equity markets following yesterday's rate moves,'' said Simon Derrick, chief currency strategist at Bank of New York Mellon Corp. ``Movement on the yen is a good bellwether of any of the mood in risk appetite.''
``People will be somewhat reluctant to buy the yen from here,'' said Akio Shimizu, chief manager of foreign-exchange trading in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan's largest publicly traded bank. ``The yen's gains against many currencies are starting to breach the comfort zone, so the G-7 may want to stabilize the currency.''
The Federal Reserve reduced its target lending rate by a half-percentage point to 1.5 percent yesterday, while the European Central Bank and counterparts from the U.K., Canada, Sweden and Switzerland also announced cuts. Central banks in China, Hong Kong and Taiwan lowered their key rates and the Bank of Korea cut its benchmark for the first time in four years.
``You would be looking to buy dollars,'' said Kathy Lien, director of research at GFT Forex in New York, in a Bloomberg Television interview. ``Two to three months down the line the ECB will still be cutting interest rates while the Fed won't. The ECB has a lot more room to cut interest rates.''

EUR/USD reached $1.3785, before profit take pushed the pare down to $1.3670. Offers $1.3800/05. Bids $1.3660/50.

Philip Shaw, chief economist at Investec- "The figures (trade deficit) are very disappointing. In the grand scheme of things, these are relatively minor figures, particularly in a week like this week, but they do show the extent to which the UK economy is imbalanced."

Nicole Elliott, senior technical analyst at Mizuho Corporate Bank - "Dropping below the psychological 100.00 as the ‘carry trade’, in the guise of Yen crosses, are unwound at an alarming rate. One-month at-the-money implied volatility at 23.40% is closest to the 1998 high of 34.75% than it has ever been. The USD is very oversold and momentum is clearly bearish. The move lower that we expect looks to have started a little sooner than we had thought. Chaos reigns so only do what you have to do and remember, Japan plc is the nearest thing to a ‘safe haven’ that we have right now."

The yen had its biggest decline against the euro in almost eight years as a flurry of central bank interest-rate cuts helped arrest a slump in stocks, bolstering demand for higher-yielding assets funded in Japan.
Japan's currency also tumbled versus the U.S., Australian and New Zealand dollars as equities in Asia and Europe rebounded. The pound dropped versus the euro on speculation more interest-rate cuts are needed to avert an economic slump.
``The yen declines reflect greater stability in equity markets following yesterday's rate moves,'' said Simon Derrick, chief currency strategist at Bank of New York Mellon Corp. ``Movement on the yen is a good bellwether of any of the mood in risk appetite.''
``People will be somewhat reluctant to buy the yen from here,'' said Akio Shimizu, chief manager of foreign-exchange trading in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan's largest publicly traded bank. ``The yen's gains against many currencies are starting to breach the comfort zone, so the G-7 may want to stabilize the currency.''
The Federal Reserve reduced its target lending rate by a half-percentage point to 1.5 percent yesterday, while the European Central Bank and counterparts from the U.K., Canada, Sweden and Switzerland also announced cuts. Central banks in China, Hong Kong and Taiwan lowered their key rates and the Bank of Korea cut its benchmark for the first time in four years.
``You would be looking to buy dollars,'' said Kathy Lien, director of research at GFT Forex in New York, in a Bloomberg Television interview. ``Two to three months down the line the ECB will still be cutting interest rates while the Fed won't. The ECB has a lot more room to cut interest rates.''
The dollar gained on speculation financial institutions will seek to buy more of the currency in the foreign-exchange market due to the reluctance of banks to lend to each other.
`External credit pressures remain elevated,'' said Peter Pontikis, a treasury strategist at Suncorp-Metway Ltd. in Brisbane, Australia. ``Part of the reason why the dollar is going up is because of elevated funding pressures.''

Terri Belkas, currency analyst at FXCM - "The European Central Bank (ECB) is one of the most hawkish and stubborn monetary policy makers, as they went on the hike rates right up until July as credit conditions worsened and left rates unchanged at their meeting last week. However, in an effort to show solidarity with the likes of the Federal Reserve and Bank of England, the ECB set their primary mandate of price stability aside for a day to slash rates by 50bps to 3.75 percent. However, unlike the central banks of the US and UK, the ECB’s subsequent press release had very little substance, as they simply said that “upside inflation risks” had decreased, but jumped right back into hawk mode when they said that by keeping inflation expectations in check and “securing price stability” would be supportive of economic growth and financial stability."

Hans Nilsson, FX strategist at CMS Forex- "The dollar, trading mixed against its rivals Wednesday, was sharply higher against the commodity currencies but lower versus the yen and euro. In an unprecedented move to alleviate the financial crisis and global economic slowdown, major six central banks each cut benchmark interest rates 50 basis points. Sterling fell after the UK government announced a package of new measures to help the banking system which could total £400 billion ($692 billion). The yen gained as risk aversion increased and the coordinated rate cuts failed to cheer stock markets. The Australian dollar plunged the most since 1983."

Resistance 3: Y103.20
Resistance 2: Y102.30
Resistance 1: Y101.20
Current price: Y100.68
Support 1: Y100.00
Support 2: Y98.60
Support 3: Y95.75

Comments: The yen fell against the dollar for the first time this month as a flurry of central bank interest- rate cuts helped arrest a slump in Asian equities, bolstering confidence in higher-yielding assets. At present as the nearest level of support acts mark Y100,00, further is located the level of a yesterday's low on Y98,60, which successful overcoming to Y95,75 (Mar 17 low). At continuation of growth the area of a session high on Y101,20 will be the nearest resistance. Above is possible return to Y102,30 and Y103,20 (50,0 % and 61,8 % FIBO of falling Y106,20-Y98,50).

Resistance 3: Chf1.1500
Resistance 2: Chf1.1440
Resistance 1: Chf1.1310
Current price: Chf1.1251
Support 1: Chf1.1220
Support 2: Chf1.1140
Support 3: Chf1.1085

Comments: The dollar gained on speculation financial institutions will seek to buy more of the currency in the foreign-exchange market due to the reluctance of banks to lend to each other. As the nearest resistance acts the area of session high on Chf1,1310. Above is possible growth to Chf1,1440 (yesterday's high) and further to Chf1,1500 (Monday's high). Area Chf1,1200/20 (session low and also Oct 03 low) is strong support which overcoming will open road to Chf1,1140 and further to Chf1,1085.

Resistance 3: $1.7850
Resistance 2: $1.7650
Resistance 1: $1.7420
Current price: $1.7350
Support 1: $1.7165
Support 2: $1.7040
Support 3: $1.6940
Comments: Resistance at $1,7320 (area of a session high, and also Oct 6-7low on) have been pierced. Further possible growth to former support $1.7420 and $1,7650 (high of Nov 7-8), and up to $1,7850 (area of high Oct 1 and 3). Support is located in a sessionlow on $1,7165, stronger level is the area of Nov 2005 low on $1,7040. Below possible falling to $1,6940 (area of Nov 25-26th, 2003 low).

Resistance 3:$1.3980
Resistance 2: $1.3900
Resistance 1: $1.3780
Current price: $1.3742
Support 1: $1.3570
Support 2: $1.3445
Support 3: $1.3360
Comments:rate retaines consolidative mood. Having piersed resistance in the area of $1,3740 ( Oct 2 low and Okt 7-8 high) euro tested Fibo on $1,3780 (23.6 % of decrease $1,4870-$ 1,3440) and may now target Oct 03 high $1.3900 and $1,3980 (38,2 %). As the nearest support acts the area of a session low on $1,3570, further is located a low of Monday on $1,3445, after overcoming the given level probably falling to $1,3360 (Aug 2007 low).

EUR/USD $1.3500
USD/JPY Y100.00, Y102.00, Y103.10

The yen fell against the dollar for the first time this month as a flurry of central bank interest- rate cuts helped arrest a slump in Asian equities, bolstering confidence in higher-yielding assets.
Japan's currency declined versus the euro, the Australian dollar and the New Zealand dollar after the U.S., Europe and South Korea lowered borrowing costs to counter the worst financial crisis since the Great Depression. Group-of-Seven ministers meeting tomorrow may say the yen's 4.6 percent advance this week against the greenback has been too rapid.
Finance ministers and central bankers from the G-7 will meet for two days in Washington to discuss the financial crisis, which has already led to bank bailouts in most of the member nations. The group comprises Canada, France, Germany, Italy, the U.K., the U.S. and Japan.
The Federal Reserve reduced its target lending rate by a half-percentage point to 1.5 percent yesterday, while the European Central Bank and counterparts from the U.K., Canada, Sweden and Switzerland also announced cuts. Central banks in China, Hong Kong and Taiwan lowered their key rates and the Bank of Korea cut its benchmark for the first time in four years.
The dollar gained on speculation financial institutions will seek to buy more of the currency in the foreign-exchange market due to the reluctance of banks to lend to each other.

EUR/USD has established a session low on $1.3575 then has risen above a level $1,3700
GBP/USD having reached a mark $1.7165, has updated a low then has risen in area $1.7300
USD/JPY the pair has risen from a level of opening of today's session on Y99,10 in area Y101,20. Continues to come nearer to yesterday's high on Y101,68.

US data starts at 1230GMT, when jobless claims are expected to fall 22,000 to 475,000 in the October 4 week. US wholesale inventories for August are due at 1400GMT, ahead of the weekly natural gas stocks data at 1435GMT.

-- Eurozone inflation risks have decreased further
-- Still crucial to avoid 2nd round inflation effects
-- Stable inflation expectations to support growth, jobs.

Japan's benchmark stock indices ended Thursday's session mixed, although all well off session highs. The Nikkei 225 was lower by 45.83 points, or 0.50%, at 9157.49. The broader-based TOPIX managed to eke out modest gains, ending 6.10 points higher at 905.11.

Japan's shares plunged, driving the Nikkei 225 Stock Average to its third-largest decline. The accelerating credit crisis prompted a sell-off that erased more than $250 billion in equity value.
Toyota Motor Corp., the world's second-largest carmaker, fell the most in 21 years after Nikko Citigroup Ltd. cut its rating. Mizuho Financial Group Inc. slid 7.7 percent as bankruptcies surged to the highest since May 2003. Elpida Memory Inc., the nation's largest computer memory maker, dropped to a record low as the yen strengthened to 100 against the dollar.
The Nikkei 225 Stock Average sank 952.58, or 9.4 percent, to 9,203.32 at the close of trading in Tokyo, the steepest fall since a 15 percent drop in October 1987. The broader Topix index declined 78.60, or 8 percent, to 899.01, also the biggest loss in 21 years. Losses accelerated through the day as markets across Asia plummeted and Indonesia's exchange suspended trading.
The $250 billion in value erased from the main board of the Tokyo exchange was the most for a single day since at least 1989.
Toyota plunged 12 percent to 3,280 yen, the biggest slide since October 1987. Nikko Citigroup's Noriyuki Matsushima cut his rating to ``sell'' from ``buy,'' saying operating profit is likely to be 1.1 trillion yen ($10.9 billion) for the year ending in March, 31 percent below the company's estimate.
The Nikkei newspaper said Toyota's operating profit may drop 40 percent this year to 1.3 trillion due to slowing demand for cars.
Isuzu Motors Ltd., Japan's largest maker of light-duty trucks, slid 14 percent to 192 yen, the steepest fall since August 2004. Hino Motors Ltd., which makes trucks for Toyota, dropped 14 percent to 295 yen after Nikko Citigroup also lowered the shares to ``hold'' from ``buy.''
Mizuho, Japan's second-largest listed bank, dropped 7.7 percent to 361,000 yen. Sumitomo Mitsui Financial Group Inc., the third largest, declined 6.5 percent to 559,000 yen.
Nippon Steel Corp., the nation's largest maker of the alloy, dropped 12 percent to 281 yen after its chairman said in an interview with the Nikkei that global steel demand will slow. JFE Holdings Inc., the No. 2, fell 14 percent to 2,330 yen.

European stocks fell, sending the Dow Jones Stoxx 600 Index to its worst three-day retreat since October 1987, on concern a coordinated interest-rate cut by six central banks won't prevent a global recession.
Royal Ahold NV, the Dutch owner of the U.S. Stop & Shop chain, dropped 6.6 percent as American retailers including J.C. Penney Co. forecast profit below analysts' estimates. BHP Billiton Ltd., the world's biggest mining company, sank 11 percent and BP Plc lost 6.8 percent as metals and oil slumped. Barclays Plc declined 2.4 percent even after British banks got a 50 billion-pound ($87 billion) government lifeline and emergency loans from the central bank.
National indexes fell more than 4 percent in all 18 western European markets except Iceland and Portugal. Germany's DAX slipped 5.9 percent. The U.K.'s FTSE 100 declined 5.2 percent, while France's CAC 40 sank 6.3 percent.
Ahold slumped 6.6 percent to 7.48 euros. Tesco Plc, the U.K.'s biggest supermarket company, lost 3.1 percent to 381.1 pence.
J.C. Penney, Kohl's Corp. and Nordstrom Inc. forecast third-quarter profit that may trail analysts' estimates after September sales fell because of consumer concerns that the Wall Street meltdown will cost them their jobs and savings.
BHP Billiton dropped 11 percent to 972.5 pence. Anglo American Plc, the world's fourth-largest diversified mining company, declined 8.7 percent to 1,420 pence.
Copper, the metal used in wires and pipes, declined 6 percent to $5,295 a metric ton on the London Metal Exchange. Aluminum, nickel, tin, zinc and platinum also retreated.
BP, Europe's second-biggest oil company, slipped 6.8 percent to 417 pence. Royal Dutch Shell Plc, the region's largest, declined 5.8 percent to 18.80 euros.
Barclays, the U.K.'s second-biggest bank by market value, retreated 2.4 percent to 278.25 pence.
The Fed's decision today brought its benchmark rate to 1.5 percent. The ECB's main rate is now 3.75 percent; Canada's fell to 2.5 percent; the U.K.'s rate dropped to 4.5 percent; and Sweden's rate declined to 4.25 percent. China cut interest rates for the second time in three weeks, reducing the main rate to 6.93 percent.

Stocks traded in an extremely volatile manner on Wednesday as investors digested a coordinated global interest rate cut, economic concerns and turmoil in the financial markets.
The S&P 500 settled with a loss of 1.1% after a surge in selling interest in the final half-hour of trade sank stocks from a 2% gain. The S&P 500 traded as high as 2.5% and down as much as 2.5%. Eight of the ten economic sectors posted a loss in heavy trading volume.
The Federal Reserve, European Central Bank, Bank of England, Swiss National Bank, Bank of Canada, and Sveriges Riksbank (Sweden) made an emergency intermeeting coordinated 50 basis point rate cut. Increased economic risks and moderating inflation pressures warranted the move in an effort to improve liquidity and reduce strains in the financial market, the Fed said. The fed funds rate is now at 1.50%, and the discount rate is at 1.75%.
The move to cut interest rates came as global equities tumbled due to tight credit markets and economic worries. Japan's Nikkei plummeted 9.4% and Hong Kong's Hang Seng dropped 8.2%. Europe fell 6.0% as its financial institutions remain troubled -- Britain announced a plan to bailout its banking system, which included a pledge for $87 billion in direct support for eight major banks, according to reports.
In corporate news, Bank of America (BAC 21.97, -1.80) fell 7.6% after its $10 billion common stock offering was priced at a 7.5% discount to yesterday's closing level and a 31.7% discount to BofA's closing level on Monday. BofA plunged more than 25% on Tuesday after announcing disappointing third quarter earnings, giving a dour outlook, cutting its dividend by 50% and announcing the $10 billion common stock offering.
The financial sector (-3.0%) ended the session as a laggard after giving up a 3.9% gain in late-session selling pressure as investors were aware that the SEC short-selling ban is scheduled to expire at midnight tonight.
Dow component Alcoa (AA 14.60, -2.11) marked the start of the third quarter earnings season on a negative note after the aluminum maker's results fell well short of expectations. Third quarter earnings per share dropped 40% year-over-year due to falling aluminum prices, softening demand and higher costs.
Despite the weakness in Alcoa, the material sector outperformed with a gain of 2.6%. Agriculture chemical company Monsanto (MON 81.63, +7.45) pleased investors with its quarterly earnings report.
In commodity trading, oil prices saw large swings, moving largely in tandem with stocks, as traders speculated how the global economic turmoil will impact demand. The government's weekly energy inventory data showed larger-than-expected increases in crude and gasoline stockpiles. Oil prices fell 1.6% to $88.64 per barrel.
Despite the economic turmoil and uncertainty, Treasuries came under selling pressure after the government sold additional debt to meet high investor demand, according to reports. The 10-year note dropped 46 ticks to send its yield up to 3.67%.

China's benchmark stock indices ended the day higher, boosted by a rally in the financials in the wake of the PBOC cut. The benchmark Shanghai Comp ended the morning up 11.78 points or 0.56 pct at
2,104.01 after moving in and out of positive territory several times. The Shanghai A-share Index was up 12.39 points or 0.56 pct at 2,209.66, while the Shenzhen A-share Index rose 2.81 points or 0.47 pct to 602.49.

The yen rose to a three-year high against the euro and gained versus the dollar on concern interest-rate cuts by global central banks may fail to boost confidence, encouraging the sale of higher-yielding assets.
The Federal Reserve reduced its target lending rate by a half-percentage point to 1.5 percent, while the European Central Bank and the central banks of the U.K., Canada, Sweden and Switzerland also reduced rates. Separately, China's central bank lowered its key one-year lending rate.
The Bank of Japan held its target lending rate at 0.5 percent yesterday, compared with 7.5 percent in New Zealand and 5.75 percent in Norway. The Reserve Bank of Australia cut its cash rate by 1 percentage point to 6 percent yesterday.
The Fed also reduced its rate on direct loans to banks, the discount rate, by a half-point to 1.75 percent. The U.S. central bank said yesterday it would set up a special vehicle to buy commercial paper to help revive the corporate-debt market.
Finance ministers and central bankers from the Group of Seven nations will meet in Washington on Oct. 10 to discuss the financial crisis. Measures to stabilize global stock markets will be on the agenda, according to a Japanese official who briefed reporters on condition of anonymity before the central banks' announcement. The G-7 comprises Canada, France, Germany, Italy, Japan, the U.K. and the U.S.

EUR/USD after the second unsuccessful testing a mark $1.3750 has receded in area $1,3620.

Resistance 3: Y103.20
Resistance 2: Y102.30
Resistance 1: Y101.20
Current price: Y100.68
Support 1: Y100.00
Support 2: Y98.60
Support 3: Y95.75
Comments: The yen fell against the dollar for the first time this month as a flurry of central bank interest- rate cuts helped arrest a slump in Asian equities, bolstering confidence in higher-yielding assets. At present as the nearest level of support acts mark Y100,00, further is located the level of a yesterday's low on Y98,60, which successful overcoming to Y95,75 (Mar 17 low). At continuation of growth the area of a session high on Y101,20 will be the nearest resistance. Above is possible return to Y102,30 and Y103,20 (50,0 % and 61,8 % FIBO of falling Y106,20-Y98,50).

Resistance 3: Chf1.1500
Resistance 2: Chf1.1440
Resistance 1: Chf1.1310
Current price: Chf1.1271
Support 1: Chf1.1220
Support 2: Chf1.1140
Support 3: Chf1.1085
Comments: The dollar gained on speculation financial institutions will seek to buy more of the currency in the foreign-exchange market due to the reluctance of banks to lend to each other. As the nearest resistance acts the area of session high on Chf1,1310. Above is possible growth to Chf1,1440 (yesterday's high) and further to Chf1,1500 (Monday's high). Area Chf1,1200/20 (session low and also Oct 03 low) is strong support which overcoming will open road to Chf1,1140 and further to Chf1,1085.

Resistance 3: $1.7850
Resistance 2: $1.7650
Resistance 1: $1.7320
Current price: $1.7248
Support 1: $1.7165
Support 2: $1.7040
Support 3: $1.6940
Comments: U.K. central bankers have canceled today's scheduled decision after lowering the benchmark rate to 4.5 percent and their next meeting is in November. After simultaneous decrease rates the pound has continued to sustain losses and has reached a low level against dollar since Jan 2006. Support is located in a sessionlow on $1,7165, stronger level is the area of Nov 2005 low on $1,7040. Below possible falling to $1,6940 (area of Nov 25-26th, 2003 low). Resistance is noted on $1,7320 (area of a session high, and also Oct 6-7low on). Further is possible growth to $1,7650 (high of Nov 7-8), and up to $1,7850 (area of high Oct 1 and 3).

Resistance 3:$1.3980
Resistance 2: $1.3780
Resistance 1: $1.3740
Current price: $1.3682
Support 1: $1.3570
Support 2: $1.3445
Support 3: $1.3360
Comments:The Federal Reserve reduced its target lending rate by a half-percentage point to 1.5 percent yesterday, while the European Central Bank and counterparts from the U.K., Canada, Sweden and Switzerland also reduced borrowing costs. China's central bank lowered its one-year lending rate and Korea cut its benchmark for the first time in four years. Not looking at the occuring events, essential changes in tech on EUR/USD haven't occured. As the nearest support acts the area of a session low on $1,3570, further is located a low of Monday on $1,3445, after overcoming the given level probably falling to $1,3360 (Aug 2007 low). In case of restoration by the nearest resistance there will be an area $1,3740 (area of Oct 2 low and Okt 7-8 high). Further is Fibo on $1,3780 (23.6 % of decrease $1,4870-$ 1,3440) and $1,3980 (38,2 %).

High Low Close
EUR/USD 1.3753 1.3542 1.3630
USD/JPY 101.68 98.56 99.09
GBP/USD 1.7655 1.7260 1.7272
USD/CHF 1.1442 1.1206 1.1276

EUR/JPY 137.84 136.30 137.42
EUR/GBP 0.7938 0.7714 0.7889
GBP/JPY 178.80 170.90 171.19
GBP/CHF 2.0029 1.9403 1.9478

Change % Change Last
Nikkei -952,58 -9,38% 9203,32
Topix -78,60 -8.04% 899,01
FTSE -238.53 -5.18% 4,366.69
DAX -313.01 -5.88% 5,013.62
CAC -235.33 -6.31% 3,496.89
Dow -189.96 -2.01% 9,258.10
NASDAQ -14.55 -0.83% 1,740.33
S&P -11.29 -1.13% 984.94
10yr Note +2.0900 +0.596% 3.715%
NYMEX Crude Oil -1.11 -1.23% 88.95
Gold +24.50 +2.78% 906.50

00:30 Australia Unemployment Rate (Sep) 4,1%
00:30 Australia Employment Change (Sep) 14,6К
01:00 Australia Consumer Inflation Expectation (Oct) 4,4%
06:00 Germany Trade Balance (Aug) 13.9B
08:00 Е15 ECB Monthly Report (Oct)
08:30 UK Total Trade Balance (Aug) -4.6B
08:30 UK Goods Trade Balance (Aug) -7.7B
12:30 USA Jobless claims (week to 04.10) 497K
14:00 USA Wholesale inventories (August) 0,5% 1,4%
20:30 USA M2 money supply (29.09), bln +165.5
23:50 Japan BoJ meeting minutes (16-17.09)