Stocks are giving up some gains as all ten of the economic sectors dip.
Dell (DELL 12.80, +0.19) plans further cost-cutting measures, including a hiring freeze and voluntary severance packages, The Wall Street Journal reports.
The utilities sector underperforms with a gain of only 0.2%. Electric utility PPL (PPL 28.57, -3.90) this morning reported worse-than-expected third quarter earnings and issued downside fiscal year 2008 and 2009 earnings guidance, citing cost pressures and higher financing costs.

EUR/USD $1.2725, $1.2900
USD/JPY Y97.50, Y98.00, Y99.00, Y99.10, Y100.00
AUD/USD $0.6700

Has ebbed to Y100.15 area now as yen crosses ease back from their strongest levels of the day, the retreat matching some back and filling in US stocks where Dow is up 250 vs 300 earlier. Dollar highs were notched at Y100.55 in what traders are describing as a "relief" rally in stocks, risk and carry type trades. Stops still eyed at Y100.80. Y100.50/85 zone (Oct 22 high and 50% retracement of Y110.65 decline) is seen as the strong resistance, where a fade is expected.
Closest support lies at Monday session low at Y98.20. Stronger level remains at Y96.10 (50% of the most resent rebound).

Stocks trade modestly below session highs. Crude prices spike higher, now up 11.5% to $70.63 per barrel.
Airlines (-2.7%) are notable laggards, with selling interest driven by the spike in crude prices weighing on the industry and a poor November outlook from Continental Airlines (CAL 18.19, -2.26). Continental said it expects domestic revenue per available seat mile to rise by 4% to 6% in November, compared to recent guidance of low-to-mid teens, Reuters reports.

Oil is up $6.09 on session as risk-appetite returns -- stocks extend rally and dollar trade weighted index weakens.

The dollar fell the most against the euro since the 15-nation currency's 1999 debut and the yen weakened as a rally in global stocks and declines in money- market interest rates reduced the currencies' haven appeal.
The greenback also dropped against the New Zealand and Australian dollars as the cost of borrowing dollars for one month in London slid to the lowest level in almost four years.
The dollar fell 2.7% to $1.3000 per euro, from $1.2643 yesterday.

The stock market trades slightly below its recently reached session high. Oil prices continue to surge higher, up 7.7% to $68.86 per barrel.
General Electric (GE 20.89, +1.59) is showing notable strength, rallying 8.2%. The Wall Street Journal reported earlier today, citing sources, that the Treasury is considering investments in a broad range of financial companies, not just banks and insurers. The report went on to specifically mention GE's capital unit and CIT Group (CIT 5.89, +1.37).
A GE spokesperson said a Treasury investment is not expected, but would consider an offer if one was made, Reuters reported.

Bulls are eyeing break above $1.3000 -- 61.8% of $1.3300 to $1.2525 move as the fast 10-day momentum study continues to pick up steam and now threatening break into positive territory. Risk is seen to the 21-day moving average, which is now valued at $1.3145. The 21-DMA capped topside last rally on Oct 30 and another fade not ruled out. Still $1.3200 38.2% of $1.4866 decline and October 30 high remains the key resistance.

European equity bourses are extending gains with banks and defensive stocks leading the charge as Wall Street moves higher. S&P-500 index has broken key resistance at 985.0 and now threatening to break above 1000.0 level. Xetra-DAX has broken above 5,200 and hitting 16-day highs -- currently at 5,205, up 180pts (+3.56%), CAC-40 is up 125pts (+3.52%) and FTSE-100 is up 142pts (+3.19%).

Orbits a narrow range in US trading and has eased back from earlier highs at Y99.70 area to trade currently around Y99.30 as euro-yen and dollar-yen both track stocks/risk-appetite to some degree. Dollar pair said to hold supply ahead of Y100.00 area, offers starting atop Y99.75. Bids back at the overnight low Y98.45/35.

Stocks climb to session highs in broad-based strength led by telecom (+4.7%), energy (+4.8%), materials (+4.2%) and financials (+3.3%).
The healthcare sector is underperforming on a relative basis with a gain of 1.4%.
The S&P 500 has rallied 18% since its multi-year low reached on October 10, but is still down 32% this year.

Cable retaines positive mood after pressing on to a $1.59 handle into US dealing, with Asian sovereign demand having pushed the pair higher in European session. The positive tone in stocks is helping to underpin the pair, while traders continue to report poor liquidity exacerbating moves. The closest resistance noted at $1.5970 next at $1.6013 (38.2% $1.6675-$1.5603) and $1.6130 (50% $1.6675-$1.5603) with the long-term bearish stance retained while cable holds under the daily moving averages. Bids spotted at $1.5900 and $1.5850/40.

September factory orders fell 2.5% month-over-month after dropping 4.3% in August. The results were worse than the 0.8% decline that was expected.
The stock market sports a solid gain, having a mostly muted reaction to the data. All ten sectors are in positive territory, led by energy (+3.9%).
Commodities are rallying in conjunction with stocks, with oil up 3.7% to $66.26 per barrel and gold up 2.4% to $744.20 per ounce. The dollar, meanwhile, is down 1.5% against a basket of world currencies.

Economists expect a decline of 0.8% for September. This is compared to August, when factory orders plunged 4%.

Dollar weakness and rebound in stocks main factors driving commodity prices higher. WTI Nymex crude oil has since eased back to $65.75, up $1.87 on session.

A sharply higher start is expected, although futures have dipped from session highs: S&P futures vs fair value: +24.90. Nasdaq futures vs fair value: +29.00. Credit markets continue to show improvements. Interbank dollar lending, known as Libor, declined across all terms and the TED Spread is down 20 basis points to 2.22%. Walgreen (WAG) reported a 2% year-over-year increase in October same-store sales and an overall increase of 6.8%.
But stocks could have trouble maintaining direction as investors await the outcome of the race for the White House.
Obama victory is priced into the markets because of his lead in pre-election day polls. A McCain victory would be more of a surprise to the markets.
Economy: Investors will take in a report on September factory orders, due out at 1500GMT. Economists expect a decline of 0.8% for September. This is compared to August, when factory orders plunged 4%.
Oil prices were flat, edging up 45 cents a barrel to $64.36.

Cross pushed above Monday's highs into US dealing in the stg0.8050 area, with the cross able to press on to stg0.8079 at time of writing. Resistance now comes at the 76.4% retracement of the fall from stg0.8193-stg0.7813 at stg0.8103, with the tone said to remain positive while the rate holds above the daily moving averages.

The euro rose against the dollar and yen as gains in European stocks and declines in money-market borrowing costs eased concern about the slowdown in the 15- nation economy.
The single European currency rebounded from the lowest level in a week against the dollar as Europe's Dow Jones Stoxx 600 Index rose for a sixth day and the cost of borrowing euros for three months dropped to the lowest since March. The U.K. pound fell for a third day as a measure of construction activity in Britain slid in October. The European Central Bank and Bank of England meet to decide interest rates in two days' time.
``Risk aversion is a bit lower and that's allowed the euro to gain some ground,'' said Antje Praefcke, a currency strategist in Frankfurt at Commerzbank AG. ``We're heavily dependent on the stock markets and people don't want to trade too heavily before the ECB's decision.''
The pound dropped per euro. It has declined 9 percent against the euro and 20 percent versus the dollar this year amid evidence Britain's economy is entering its first recession since the early 1990s. The Bank of England will cut the main interest rate to 4 percent from 4.5 percent on Nov. 6.
Gains by the euro may be limited before the ECB's rate decision Nov. 6. The central bank will trim its benchmark rate by half a percentage point to 3.25 percent, according to a Bloomberg survey of economists.
The euro-area economy probably entered a recession this year and will stagnate in 2009, the European Commission said yesterday. European manufacturing contracted at a record pace in October and faster than initially estimated, other data showed.
``The trend is for the euro to weaken,'' said Tokichi Ito, deputy general manager of foreign exchange in Tokyo at Trust & Custody Services Bank Ltd., a unit of Japan's second-largest publicly traded lender. ``Recession has reared its head in Europe, and that's fairly negative for sentiment.''
The Federal Reserve reduced its target rate for overnight bank loans a half-percentage point to 1 percent on Oct. 29. Futures on the Chicago Board of Trade show a 55 percent chance it will cut it again, to 0.5 percent, next month.
The ICE's Dollar Index, which tracks the greenback versus the currencies of six major U.S. trading partners, was at 85.69, after touching 87.88 on Oct. 28, the highest level since April 2006. It dropped to 70.70 in March, the lowest level this year.

EUR/USD the pair has completely blocked morning decrease in area $1,2520. At present the rate bargains in area $1,2845, is not far from a yesterday's high on $1,2857.

"Developed economy downturn is projected to extend through 2Q09 is expected to produce a 1.5% GDP decline-a contraction similar in magnitude to 1974, the worst recession in the modern era."

Crude oil prices are extending rebound as stocks continue rally and dollar index trades under pressure. WTI Nymex crude oil is at $65.35 up $1.44 on session.

Normalizing Econ Situation Takes Time
Risk Of Credit Crunch Remains

Resistance 3: Y102.35
Resistance 2: Y100.55
Resistance 1: Y99.70
Current price: Y99.33
Support 1: Y97.60
Support 2: Y96.30
Support 3: Y94.30
Comments: Tech on yen hasn't changed. The nearest resistance is located in the field of a high of October 29 on Y99,70. Overcoming of the given level will open road to Y100,55 (low of October 17 and high of October 22) and further to Y102,35 (high of October 20). The nearest support is presented by a level of 23,6 % FIBO of growth Y90,90-Y99,70 on Y97,60. Below possible decrease to Y96,30 (38,2 %) and further to Y94,30 (61,8 %).

Resistance 3: Chf1.1950
Resistance 2: Chf1.1885
Resistance 1: Chf1.1800
Current price: Chf1.1685
Support 1: Chf1.1660
Support 2: Chf1.1575
Support 3: Chf1.1430
Comments: Tech on USD/CHF hasn't changed. As the nearest support acts area Chf1,1660 (a level of 23,6 % FIBO of growth Chf1,1200-Chf1,1800). Below the level of 31,8 % on Chf1,1575 is located. Overcoming of the given mark will open road to Chf1,1430 (61,8 %). The session high on Chf1,1800 is the nearest resistance. Except for that mark Chf1,1800 also is area of low of Aug 2007. Above Chf1,1800 is possible growth to Chf1,1885 (area of high of Oct 2007) and further to Chf1,1950 (area of low of July 2007).

Resistance 3: $1.6400
Resistance 2: $1.6000
Resistance 1: $1.5900
Current price: $1.5861
Support 1: $1.5600
Support 2: $1.5400
Support 3: $1.5265
Comments: The pound has strengthened the positions against dollar. The nearest resistance - $1,5900 (session high). Above is possible growth in area $1,6000 (a Friday's low, and also area МА (200) for Н1). Overcoming of the given mark will open road to $1,6400 (a yesterday's high). The nearest support - $1,5600 (area of a session low). Below possible falling to $1,5400 (a low of October 28) and further to $1,5265 (a lows of Oct 24 and 27).

Resistance 3: $1.3000
Resistance 2: $1.2810
Resistance 1: $1.2725
Current price: $1.2730
Support 1: $1.2590
Support 2: $1.2330
Support 3: $1.2200
Comments: The pair has receded from a session low and at present resistance in the field of $1,2725. Overcoming of the given mark will open road to $1,2810 (a level 31,8%FIBO falling $1,3295-$ 1,2520). Above is possible growth to $1,3000 (61,8 %). The nearest support is located in the field of 76,4 % FIBO of growth $1,2330-$ 1,3295 on $1,2590. Overcoming of the given mark will open road to a level of 2 year low on $1,2330 and further to $1,2200 (area of high of February, 2006).

PPI (September) Y/Y 7.9%

EUR/USD $1.2725, $1.2900
USD/JPY Y97.50, Y98.00, Y99.00, Y99.10, Y100.00
AUD/USD $0.6700

The yen rose against higher-yielding currencies on speculation a series of global interest-rate cuts will make it less attractive to buy overseas assets using funds from Japan.
The yen gained against the Australian dollar after the Reserve Bank of Australia lowered borrowing costs by three quarters of a percentage point to 5.25 percent today. It also advanced versus the euro and the British pound, before expected rate reductions by the European Central Bank and the Bank of England this week.
The RBA, which has lowered its benchmark interest rate three times in a row, said the reduction was necessary because of financial-market turmoil and weaker-than-expected consumer spending. Economists expected a smaller reduction to 5.5 percent.
The Japanese currency is popular in carry trades, where purchases of higher-yielding assets are funded in nations with lower interest rates. Japan's key rate is 0.3 percent, the lowest among major economies.
Foreign-exchange markets may be ``distracted'' by the U.S. presidential elections starting later today, according to UBS AG, the world's second-largest currency trader.
Democratic nominee Barack Obama held a 54 percent to 43 percent lead among likely voters over Republican candidate John McCain in the presidential campaign, according to a Washington Post-ABC News tracking poll.
The euro fell for a fourth day against the dollar on speculation the European Central Bank will lower rates to cushion the impact of a slowing economy. The ECB will trim its benchmark rate by half a percentage point to 3.25 percent when it announces a policy decision on Nov. 6.
The Euro-zone economy probably entered a recession this year and will stagnate in 2009, the European Commission said yesterday. European manufacturing contracted at a record pace in October and faster than initially estimated, data showed yesterday.
The Bank of England will lower its key interest rate to 4 percent from 4.5 percent at a meeting ending Nov. 6, according to economists surveyed by Bloomberg. The Federal Reserve reduced its target lending rate by a half-percentage point to 1 percent on Oct. 29. Central banks in China, Taiwan, Hong Kong, India and the Middle East also cut borrowing costs in the past week as policy makers race to avert a global recession.

EUR/USD the pair has established session low in area $1,2515 then has receded in area $1,2650.

Dollar gained agains the major rivals despite ISM Manufacturing Index fall in October to lowest level since 1982, suggesting contraction in U.S. manufacturing.
Earlier the yen fell against the euro on speculation a drop in interbank borrowing costs will encourage investors to step up purchases of higher-yielding assets financed by low-cost loans in Japan's currency.
The dollar gained against the euro as evidence that Europe’s economic outlook is “precarious”.
Growth expected to grind to a halt next year and put government finances under significant pressure, the European Commission warned on Monday.
Growth in the European Union is expected to slow sharply from 1.4 per cent this year to just 0.2 per cent in 2009, according to the Brussels executive’s latest economic forecast. The eurozone – covering the 15 countries that share the euro – would slow from 1.2 per cent to just 0.1 per cent.
Eurozone inflation would average 2.2 per cent next year and 2.1 per cent in 2010 – almost within the European Central Bank’s target of an annual rate “below but close” to 2 per cent. Falling commodity prices, the weaker growth outlook and the outlook for unemployment had reduced the dangers of inflationary pressures becoming entrenched, it said.
The gloomy outlook prompted Joaquin Almunia, economic and monetary affairs commission, to call for “co-ordinated action at the EU level to support the economy” in the same way governments had acted to shore up the banking system.

EUR/USD having shown session high in the field of $1,2890, the pair has finished session in area of a session low $1,2640.

Japan's benchmark stock indices ended the day higher across the board, playing catch-up after holidays on Monday. Also, a bigger-than-expected rate cut from the RBA offered an additional boost. The Nikkei was higher by 537.62 points, or 6.27%, at 9114.60. The broader-based TOPIX was ahead by 43.58 points at 910.70.

Japan stocks market was closed Monday due to National Culture Day

European stocks advanced for a fifth day, the longest stretch of gains in a year, as declining money- market rates overshadowed evidence the global economy is slipping into a recession.
ING Groep NV, the Netherlands' biggest financial-services provider, added 5.2 percent, and Swiss Reinsurance Co., the world's second-largest reinsurer, climbed 6.3 percent as a leading money-market indicator slid to the lowest level since the collapse of Lehman Brothers Holdings Inc. HBOS Plc rallied 6.1 percent on speculation the mortgage lender may receive a rival bid to Lloyds TSB Group Plc's offer.
The Dow Jones Stoxx 600 Index rose 0.6 percent to 223.38, marking the longest winning streak since October 2007.
Investors looked past reports today that showed manufacturing in the U.S. contracted in October at the fastest pace since 1982 and factory output in the U.K. shrank for a sixth straight month. The European Commission said the region's economy probably entered a recession in the third quarter and trimmed its growth forecast for this year to 1.2 percent from 1.3 percent.
Europe's Stoxx 600 climbed 12 percent last week, the biggest weekly gain since September 2001, as central banks from the U.S. to Japan cut borrowing costs to revive economic growth.
Even after last week's rally, European stocks are headed for their worst year on record as a jump in U.S. mortgage defaults saddled global banks with more than $684 billion of losses and caused credit markets to lock up. The Stoxx 600 has tumbled 39 percent in 2008 and reached a five-year low on Oct. 27 when the gauge traded at 7.9 times reported earnings of the companies in the index, the cheapest level since at least January 2002.


U.S. stocks fell for the first time in three days as a private report showed manufacturing slumped more than forecast and analysts said the weakening economy will hurt results at companies from Disney Co. to Halliburton Co.
Disney lost 6.4 percent after Merrill Lynch & Co. said the economic slowdown will hurt theme-park and television income. Halliburton, the second-biggest U.S. oilfield services provider, led a retreat in 37 of 40 energy companies in the Standard & Poor's 500 Index after Goldman Sachs Group Inc. cut the shares to ``neutral'' and oil prices slid. AT&T Inc. jumped more than 4 percent after Wachovia Corp. said its valuation is ``compelling'' and the stock is a ``safe haven.''
The S&P 500 retreated after posting its first back-to-back gains in more than a month. The benchmark index for U.S. stocks sank 17 percent last month. The October sell-off erased more than $9.5 trillion from the value of stocks worldwide, almost one-third of the total value wiped out this year, as credit- related losses and writedowns by financial firms approached $700 billion.
About 624 million shares changed hands on the NYSE, 22 percent less than at the same time a week ago. Voters go to the polls in the U.S. tomorrow to elect a new president.
Disney lost $1.66 to $24.25. Merrill cut its share-price estimate for the world's largest theme-park operator by 11 percent to $24, saying the company's parks and broadcasting businesses may be hurt by the ``weakening consumer and softening advertising market, respectively.''
Halliburton fell 9.8 percent to $17.85, leading a decline in energy companies. The oilfield-services provider was cut to ``neutral'' from ``buy'' at Goldman, which cited ``product risks and valuation'' in a note to clients.
Crude oil fell as much as 6.2 percent after the Institute for Supply Management said manufacturing in the U.S. contracted in October at the fastest pace in 26 years.
Earlier gains in benchmark indexes were spurred by a decrease in money market rates.

Resistance 3: Y102.35
Resistance 2: Y100.55
Resistance 1: Y99.70
Current price: Y99.07
Support 1: Y97.60
Support 2: Y96.30
Support 3: Y94.30
Comments: The yen rose against higher-yielding currencies on speculation a series of global interest-rate cuts will make it less attractive to buy overseas assets using funds from Japan. The nearest resistance is located in the field of a high of October 29 on Y99,70. Overcoming of the given level will open road to Y100,55 (low of October 17 and high of October 22) and further to Y102,35 (high of October 20). The nearest support is presented by a level of 23,6 % FIBO of growth Y90,90-Y99,70 on Y97,60. Below possible decrease to Y96,30 (38,2 %) and further to Y94,30 (61,8 %).

Resistance 3: Chf1.1950
Resistance 2: Chf1.1885
Resistance 1: Chf1.1800
Current price: Chf1.1735
Support 1: Chf1.1660
Support 2: Chf1.1575
Support 3: Chf1.1430
Comments: The pair has receded from the reached session high which are intermediate resistance (Chf1,1800). Except for that mark Chf1,1800 also is area of low of Aug 2007. Above Chf1,1800 is possible growth to Chf1,1885 (area of high of Oct 2007) and further to Chf1,1950 (area of low of July 2007). As the nearest support acts area Chf1,1660 (a level of 23,6 % FIBO of growth Chf1,1200-Chf1,1800). Below the level of 31,8 % on Chf1,1575 is located. Overcoming of the given mark will open road to Chf1,1430 (61,8 %).

Resistance 3: $1.6400
Resistance 2: $1.6000
Resistance 1: $1.5840
Current price: $1.5662
Support 1: $1.5600
Support 2: $1.5400
Support 3: $1.5265
Comments: Possible reduction of a discount rate by Bank of England puts pressure upon pound. The nearest support - $1,5600 (area of a session low). Below possible falling to $1,5400 (low of Oct 28) and further to $1,5265 (lows of Oct 24 and 27). The nearest resistance is presented by a level $1,5840 (a session high). Above is possible growth in area $1,6000 (a Friday's low, and also area МА (200) for Н1). Overcoming of the given mark will open road to $1,6400 (a yesterday's high).

Resistance 3: $1.3000
Resistance 2: $1.2810
Resistance 1: $1.2670
Current price: $1.2596
Support 1: $1.2590
Support 2: $1.2330
Support 3: $1.2200
Comments: Expectations of decrease in discount rate ECB this weeks negatively influence euro. The pair tests support in the field of 76,4 % FIBO of growth $1,2330-$ 1,3295 on $1,2590. Overcoming of the given mark will open road to a level of 2 year low on $1,2330 and further to $1,2200 (area of high of Feb 2006). Intermediate resistance is presented by area of a Friday's low on $1,2670. Overcoming of the given mark will open road to $1,2810 (a level 31,8%FIBO falling $1,3295-$ 1,2520). Above is possible growth to $1,3000 (61,8 %).

High Low Close
EUR/USD 1.2897 1.2594 1.2643
USD/JPY 99.64 98.20 99.11
GBP/USD 1.6398 1.5779 1.5828
USD/CHF 1.1751 1.1471 1.1747

EUR/JPY 128.43 124.69 125.31
EUR/GBP 0.8056 0.7838 0.7987
GBP/JPY 163.32 158.58 156.83
GBP/CHF 1.8971 1.8420 1.8589

Change % Change Last
FTSE +65.94 +1.51% 4,443.28
DAX +38.87 +0.78% 5,026.84
CAC +40.90 +1.17% 3,527.97
DOW -3.75 -0.04% 9,321.26
NASDAQ +5.38 +0.31% 1,726.33
S&P 500 -2.42 -0.25% 966.33
10yr Note -0.6600 -0.166% 3.904%
NYMEX Crude Oil -3.90 -5.75% 63.91
Gold +8.60 +1.20% 726.80

03:30 Australia RBA meeting announcement 5,25% 5.50% 6,00%
06:45 Switzerland СPI (Oktober), YoY 2,9%
06:45 Switzerland СPI (Oktober) 0,1%
10:00 Е15 PPI (September) Y/Y 8,5%
10:00 Е15 PPI (September) -0,5%
15:00 USA Factory orders (September) -1.7% -4.0%