Stocks fall to fresh flows as financials (-4.9%) come under additional selling pressure.
Within the S&P 500, 472 stocks are posting a decline. The main laggards are Exxon Mobil (XOM 74.99, -2.50) and AT&T (T 27.66, -1.62). Medco Health Solutions (MHS 42.02, +4.02) and Chesapeake Energy (CHK 25.63, +2.67) are providing leadership.

A number of analysts mention ADP -157k pvt jobs and 113k Challenger Oct layoffs. RDQ Economics says the data "point to downside risk to our forecast for a 200,000 decline in nonfarm payrolls." Newedge Strategy calls the data weak and says their "call is for a -150k NFP in October. However, risks to our call are skewed to the downside." GS says the data, along with sales, show an economy in decline. JPM points out "In each of the last eleven months the ADP estimate has been above the BLS figure, with the average miss being 87,000 over that period."

The major indices remain under pressure, trading near their recently reached session lows.
The financial sector has been hit especially hard (-4.2%). Retail REITs are down 8% following disappointing results from General Growth Properties (GGP 2.53, -1.96). Investment banks and brokerages are down 5.1%. Meanwhile, bond insurers MBIA (MBI 8.38, -2.08) and Ambac (ABK 2.29, -1.11) are getting hammered after reporting larger-than-expected quarterly losses.

Choppy action but dollar holds at Y98.80 and is marginally improved from the Y98.60 level seen just a few moments ago. Market remains thin, the pair giving up the strength seen by default in morning action as various yen crosses powered higher. Dollar lows were marked near Y98.40 earlier, the pair pulling up short of demand interest at Y98.20/15.

The dollar fell against the euro as a contraction in U.S. services increased speculation that the Federal Reserve will cut the target lending rate by a half- percentage point next month.

Sliding to fresh lows for the day as fixing supply continues to weigh on the euro, with light bids in the stg0.8080 area now eroded. Traders reporting additional demand in the stg0.8030 area, though again this is not said to be substantial. Techs analysts say the positive bias is retained while the cross holds above the daily moving averages, with the 5-day coming in back down at stg0.7989 today.

The recovery effort runs into resistance, sending the stock market back on the retreat.
Pharmacy management service company MedcoHealth Solutions (MHS 42.58, +4.58) is one of the best-performing S&P 500 stocks this session after reporting better-than-expected third quarter revenue and earnings. Other notable gainers in reaction to earnings include Time Warner (TWX 11.06, +0.23), Hospira (HSP 31.49, +2.84) and Molson Coors Brewing (TAP 40.73, +2.15).
Conversely, General Growth Properties (GGP 3.17, -1.32) is one of the worst-performing stocks after the REIT posted third quarter revenue and earnings that missed estimates, and gave downside guidance for fiscal year 2008. Other losers in reaction to earnings include Duke Energy (DUK 16.05, -0.87), MBIA (MBI 8.18, -2.28), Sara Lee (SLE 10.49, -1.37), March & McLennan (MMC 27.28, -2.42).

European equity bourses remain in the red Wednesday having snapped a 6-day winning streak as focus turns back to economic slowdown concerns. The move comes following weak European services PMI data this morning. Profit taking in commodities stocks was seen with ArcelorMittal a notable loser after it forecast weaker fourth-quarter earnings. Crude stocks are also lower as crude oil prices reverse the short-squeeze yesterday in anticipation of an Obama victory. CAC-40 is down 95pts (-2.58%), Xetra-DAX is down 97pts (-1.84%) and FTSE-100 is down 105pts (-2.26%).

"Using the ADP premium of 66K averaged over the past five months, October's ADP of -157K suggests that Friday's non-farm payrolls will be -223K compared to consensus expectations of -200K."

"U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) remained unchanged from the previous week. At 311.9 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year.

The October ISM Services Index, a nonmanufacturing survey, registered 44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2 reading in September. This marks the lowest level on record, which dates back to 1997. Because the result is below 50, it indicates contraction in the services sector -- the sixth month of contraction in 2008.
The stock market remains in the red and has a mostly muted reaction to the data. All ten of the economic sectors are in negative territory. Two of the largest gainers yesterday -- materials (-3.3%) and energy (-3.3%) -- are laggards this session. Longer-term Treasuries catch a bid for the second day in a row, with the 10-year note up five ticks and the 30-year bond up 15 ticks.

-- Crude oil stocks expected to rise 1.0mln barrels
-- Gasoline stocks down 650k barrels
-- Distillates stocks up 1.55 million barrels
-- Refinery utilization or run rate up 0.2% to 85.5.

Business activity 44.2, Prices paid 53.4, Employment 41.5 vs 50.8, New orders 44.0.

"An even bigger drop is possible given this month's: 4pt fall in Jobs Plentiful index, 5pt rise in Jobs Hard to Get index, 79% y/y rise in this morning's Challenger Job Cuts, and 7pt drop in ISM mfg employment to 35."

Futures suggest the lower start: S&P futures vs fair value: -17.40. Nasdaq futures vs fair value: -23.00.

EUR/USD $1.2950, $1.3000, $1.3200
USD/JPY Y95.70, Y99.00, Y100.00, Y101.70, Y103.15
AUD/USD $0.6550

The following data were published
00:30 Australia Trade Balance (Sep) 1,46В
03:30 Japan BoJ's Governor Shirakawa Speech
08:55 Germany Purchasing Manager Index Services (Oct) 48,3
09:00 Е15 Purchasing Manager Index Services (Oct) 45,8
09:30 UK Manufacturing output (September) Y/Y -2,3%
09:30 UK Manufacturing output (September) -0,8%
09:30 UK Industrial production (September) Y/Y -2,2%
09:30 UK Industrial production (September) -0,2%
09:30 UK CIPS services index (October) 42,4
10:00 Е15 Retail sales (September) adjusted Y/Y -1,6%
10:00 Е15 Retail sales (September) adjusted -0,2%

The dollar gained against the euro on speculation Barack Obama's sweeping victory in the U.S. presidential election will help him push through policies needed to revive the world's biggest economy.
The currency also rose against the pound and the Australian dollar as Obama won at least 349 electoral votes, more than the 270 needed, and Democrats increased their majority in Congress. The euro lost more than 2 percent versus the yen after European Central Bank member Juergen Stark signaled support for interest- rate cuts to bolster the region's shrinking economy. The single European currency also dropped as regional stocks fell.
The yen also rose as stock-market losses in Europe made it less attractive to buy overseas assets using funds from Japan. The Dow Jones Stoxx 600 Index lost 2.2 percent and U.S. stock futures declined. Yesterday, U.S. shares posted their biggest presidential election-day rally in 24 years.
Gains in the dollar may be limited by speculation the U.S. economy lost jobs for the 10th consecutive month. Nonfarm payrolls shrank by 200,000 in October, according to a survey before the report on Nov. 7.
The 15-nation euro fell against the yen after Stark told the Financial Times Deutschland in an interview that ``we're ready to use all instruments at our disposal and the main instrument is interest-rate policy.''
The ECB will lower its main refinancing rate by a half- percentage point to 3.25 percent tomorrow, according to economists.
The yen's real effective exchange rate, a measure of the currency's value against those of Japan's trading partners after adjustments for price trends, rose 11.2 percent in October from the previous month, the biggest gain on record, Bank of Japan data showed today. The index was at 111.1, the
The pound also fell as an industry report showed services industries contracted in October, adding to evidence the economy is in a recession. The Bank of England will cut its main interest rate by a half-percentage point to 4 percent tomorrow, according to the median forecast of economists.

EUR/USD after the session low at a level $1,2792 has been established, the pair has raised in area $1,2980. The rate could not keep the achievements and later has decreased below a mark $1,2900.

- Says he wants lenders to pass on rate reductions
- BOE remains independent to make rate decisions
- Will be able to work closely with Obama on crisis

The dollar gained against the euro on speculation Barack Obama's sweeping victory in the U.S. presidential election will help him push through policies needed to revive the world's biggest economy.
The currency also rose against the pound and the Australian dollar as Obama won at least 349 electoral votes, more than the 270 needed, and Democrats increased their majority in Congress. The euro lost more than 2 percent versus the yen after European Central Bank member Juergen Stark signaled support for interest- rate cuts to bolster the region's shrinking economy. The single European currency also dropped as regional stocks fell.
``Obama's clear win and the Democrats' gains in Congress are dollar positive, no doubt about it,'' said Michael Klawitter, a currency strategist at Dresdner Kleinwort in Frankfurt. ``Interest-rate spreads will move strongly in favor of the U.S., where the scope for aggressive cuts is limited.''
The yen also rose as stock-market losses in Europe made it less attractive to buy overseas assets using funds from Japan. The Dow Jones Stoxx 600 Index lost 2.2 percent and U.S. stock futures declined. Yesterday, U.S. shares posted their biggest presidential election-day rally in 24 years.
Any yen weakness ``is likely to prove both limited and short-lived as the onset of potentially the worst global recession since the early 1980s continues to drive further dollar and yen supportive repatriation flows,'' Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi Ltd., wrote in a client note today.
Gains in the dollar may be limited by speculation the U.S. economy lost jobs for the 10th consecutive month. Nonfarm payrolls shrank by 200,000 in October, according to a survey before the report on Nov. 7.
``We're seeing a congratulatory bounce in the dollar,'' said Kengo Suzuki, currency strategist in Tokyo at Shinko Securities Co. ``It's not likely to continue. The U.S. economy is in a weak state, and there all still a lot of questions about what type of policies Obama will put into place.''
The 15-nation euro fell against the yen after Stark told the Financial Times Deutschland in an interview that ``we're ready to use all instruments at our disposal and the main instrument is interest-rate policy.''
The ECB will lower its main refinancing rate by a half- percentage point to 3.25 percent tomorrow, according to economists.
``The market is expecting the ECB to be dovish tomorrow,'' said Henrik Gullberg, a currency strategist in London at Deutsche Bank AG, the world's biggest foreign-exchange trader. ``The ECB has more scope to cut rates and from that perspective, you'd expect negative developments for the euro.'' The euro may trade at about $1.20 by year-end.
The yen's real effective exchange rate, a measure of the currency's value against those of Japan's trading partners after adjustments for price trends, rose 11.2 percent in October from the previous month, the biggest gain on record, Bank of Japan data showed today. The index was at 111.1, the highest since August 2005.
``The yen is the strongest currency,'' said Yuji Kameoka, senior economist and currency analyst at Daiwa Institute of Research in Tokyo. ``A global economic slowdown and declining asset prices will lead to further yen gains.''
The pound also fell as an industry report showed services industries contracted in October, adding to evidence the economy is in a recession. The Bank of England will cut its main interest rate by a half-percentage point to 4 percent tomorrow, according to the median forecast of 60 economists surveyed by Bloomberg News.

Resistance 3: Y103.10
Resistance 2: Y102.35
Resistance 1: Y100.55
Current price: Y99.03
Support 1: Y98.30
Support 2: Y96.90
Support 3: Y94.60
Comments: The pair has tested the nearest support in the field of Y98,30 (21,8%FIBO growth Y90,90-Y100,55) then has receded to level Y99,00. Further decrease to Y96,30 (38, %) and to Y94,60 (61,8 %) is possible. In case of easing the yen, the nearest resistance will be area of a yesterday's low on Y100,55 (besides the given mark also is area of low of October 17 and a high of October 22). Overcoming of the given mark will open road to Y102,35 (a high of October 20). Above is located level Y103,10 (61,8 % of falling Y110,60-Y90,90).

Resistance 3: Chf1.1950
Resistance 2: Chf1.1885
Resistance 1: Chf1.1800
Current price: Chf1.1694
Support 1: Chf1.1660
Support 2: Chf1.1575
Support 3: Chf1.1430
Comments: Tech on USD/CHF hasn't changed. The yesterday's high on Chf1,1800 is the nearest resistance. Except for that mark Chf1,1800 also is area of low of August 2007. Above Chf1,1800 growth to Chf1,1885 (area of high of October 2007) and further to Chf1,1950 (area of low of July 2007) is possible. 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: $1.6650
Resistance 2: $1.6400
Resistance 1: $1.5980
Current price: $1.5902
Support 1: $1.5600
Support 2: $1.5400
Support 3: $1.5265
Comments: The pair continues to bargain near former levels. The nearest support - $1,5600 (area of a yesterday's low). Below possible falling to $1,5400 (a low of on October 28) and further to $1,5265 (a lows of October 24 and 27). The nearest resistance - $1,5980 (a session high).Above is possible growth in area $1,6400 (Monday's high). Successful overcoming of the given mark will open road to $1,6650 (61,8%FIBO falling $1,7520-$ 1,5267).

Resistance 3: $1.3080
Resistance 2: $1.3000
Resistance 1: $1.2910
Current price: $1.2841
Support 1: $1.2745
Support 2: $1.2590
Support 3: $1.2330
Comments: Tech on euro hasn't changed. As the nearest support acts area of МА (200) for Н1 on $1,2745. Overcoming of the given mark will open road to a level $1,2590 (76,4%FIBO growth $1,2330-$ 1,3290). Below there is a chance of return to $1,2330 (low of Oct 27 and 28). As intermediate resistance the level 50,0%FIBO falling $1,3290-$ 1,2590 on $1,2910 acts. Above is located the level $1,3000 (61,8 %). Overcoming of the given level will open road to $1,3080 (76,4 %).

EUR/USD $1.2950, $1.3000, $1.3200
USD/JPY Y95.70, Y99.00, Y100.00, Y101.70, Y103.15
AUD/USD $0.6550

Manufacturing output (September) Y/Y -2,3%
Manufacturing output (September) -0,8%
Industrial production (September) Y/Y -2,2%
Industrial production (September) -0,2%
CIPS services index (October) 42,4

The dollar gained against the euro on speculation Barack Obama's victory in the U.S. presidential election and Democrat gains in Congress will accelerate policies aimed at overcoming a recession.
The currency also rose against the British pound and the Australian dollar as television networks projected 338 electoral votes for Obama to 156 for Republican rival John McCain, who conceded defeat. The Democrats won four Senate seats from the Republicans. The euro declined versus the yen after European Central Bank member Juergen Stark signaled support for further interest-rate cuts to bolster the region's shrinking economy.
The 15-nation euro fell against the yen as Stark's comments, cited by the Financial Times Deutschland in an interview, bolstered expectations the ECB will lower its 3.75 percent benchmark rate at a meeting tomorrow.
The ECB will lower its main refinancing rate by a half- percentage point to 3.25 percent tomorrow, according to economists.
The yen's real effective exchange rate, a measure of the currency's value against those of Japan's trading partners after adjustments for price trends, rose 11.2 percent in October from the previous month, the biggest gain on record, Bank of Japan data showed today. The index was at 111.1, the highest since August 2005.
The pound also fell after a report showed Britain's construction industry contracted in October at the fastest pace in more than a decade. The Bank of England will cut its main interest rate by a half-percentage point to 4 percent tomorrow, according to the median forecast of economists.

EUR/USD having begun the tenders in the field of $1,2980, the pair has shown session low in area $1,2790.

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 London interbank offered rate, or Libor, that banks charge each other for one-month loans in dollars slid for a 17th day as central-bank cash injections and interest-rate cuts worldwide showed signs of reviving lending. The rate dropped 0.18 percentage point to 2.18 percent, the lowest level since November 2004, according to the British Bankers' Association.
U.S. stocks gained in an Election Day rally. The Standard & Poor's 500 Index rose above 1,000 for the first time since Oct. 14, increasing 3.5 percent. The MSCI World Index of stocks for 23 developed countries added 1.2 percent, its sixth consecutive gain, the biggest run of advances since July.
``It's a broad setback for the dollar,'' said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co. in New York. ``We do see some signs of tension subsiding a bit. This correction phase could last weeks.''

EUR/USD on results of session the dollar has lost against euro more than 300 point. Having opened the tenders of Tuesday in area of a mark $1,2640, the pair could finish day on $1,2980.

The Nikkei 225 Stock Average rose 406.64, or 4.5 percent, to close at 9,521.24 in Tokyo. The gauge has rebounded 33 percent from a 26-year low on Oct. 27, its best six-day gain according to available data back to 1970. The broader Topix index surged 56.21, or 6.2 percent, to 966.91

Japan stocks rose to a two-week high after a drop in interest rates charged between banks raised speculation lending may recover as credit markets ease.
Mizuho Financial Group Inc., a bank that last week more than halved its profit forecast, jumped 7.1 percent, while Orix Corp., the nation's biggest non-bank financial company, climbed 7 percent. Sanyo Electric Co. soared 34 percent on reports Panasonic Corp. will buy the company. Nissan Motor Co. sank 11 percent, the most since Oct. 16, after scrapping its dividend.
The Nikkei climbed 537.62, or 6.3 percent, to close at 9,114.60 in Tokyo, while the broader Topix index rose 43.58, or 5 percent, to 910.70. Both benchmarks climbed to the highest level since Oct. 21. Japan's markets were closed yesterday for a national holiday when MSCI's Asian stock index jumped 2.1 percent.
European stocks advanced for a sixth day as results from Clariant AG and Marks & Spencer Group Plc eased concern about profit growth, while money-market interest rates declined.
Clariant jumped 23 percent and Marks & Spencer rose 7.7 percent after the companies reported earnings that topped analysts' estimates. Societe Generale SA and Allianz SE both rallied more than 11 percent after a leading money-market indicator slid to the lowest level.
Europe's Dow Jones Stoxx 600 Index added 4.5 percent to 233.50. The six-day rally is the longest stretch of gains since August 2007 when the credit crisis got under way.

U.S. stocks advanced in the biggest presidential Election Day rally in 24 years, led by energy and banking shares, on rebounding commodity prices and speculation the Treasury will bail out more financial companies.
General Electric Co. added 7.1 percent and CIT Group Inc. and Principal Financial Group Inc. climbed more than 16 percent after people briefed on the matter said the government may broaden the focus of its rescue program. Exxon Mobil Corp. and Chevron Corp. led all 40 energy shares in the Standard & Poor's 500 Index higher as oil gained. Archer Daniels Midland Co. rose as much as 22 percent after profit more than doubled at the world's largest grain processor.
Today's advance in the S&P 500 and Dow average are the biggest for a presidential Election Day since the NYSE first opened for trading during a presidential vote in 1984. The S&P 500 advanced on four and fell on two of the previous presidential election days since then, averaging a 0.3 percent gain.

Resistance 3: Y103.10
Resistance 2: Y102.35
Resistance 1: Y100.55
Current price: Y98.98
Support 1: Y98.30
Support 2: Y96.90
Support 3: Y94.60
Comments: The yen's real effective exchange rate, a measure of the currency's value against those of Japan's trading partners after adjustments for price trends, rose 11.2 percent in October from the previous month, the biggest gain on record, Bank of Japan data showed today. The index was at 111.1, the highest since August 2005. As the nearest support acts area Y98,30 (21,8%FIBO growth Y90,90-Y100,55). Further decrease to Y96,30 (38, %) and to Y94,60 (61,8 %) is possible. In case of easing the yen, the nearest resistance will be area of a yesterday's low on Y100,55 (besides the given mark also is area of low of October 17 and a high of October 22). Overcoming of the given mark will open road to Y102,35 (a high of October 20). Above is located level Y103,10 (61,8 % of falling Y110,60-Y90,90).

Resistance 3: Chf1.1950
Resistance 2: Chf1.1885
Resistance 1: Chf1.1800
Current price: Chf1.1694
Support 1: Chf1.1660
Support 2: Chf1.1575
Support 3: Chf1.1430
Comments: The dollar has receded from the reached high, but continues to look optimistically. The yesterday's high on Chf1,1800 is the nearest resistance. Except for that mark Chf1,1800 also is area of low of August 2007. Above Chf1,1800 growth to Chf1,1885 (area of high of October 2007) and further to Chf1,1950 (area of low of July 2007) is possible. 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: $1.6650
Resistance 2: $1.6400
Resistance 1: $1.5980
Current price: $1.5798
Support 1: $1.5600
Support 2: $1.5400
Support 3: $1.5265
Comments: US currency also has become stronger and against pound. The nearest support - $1,5600 (area of a yesterday's low). Below possible falling to $1,5400 (a low of on October 28) and further to $1,5265 (a lows of October 24 and 27). The nearest resistance - $1,5980 (a session high).Above is possible growth in area $1,6400 (Monday's high). Successful overcoming of the given mark will open road to $1,6650 (61,8%FIBO falling $1,7520-$ 1,5267).

Resistance 3: $1.3080
Resistance 2: $1.3000
Resistance 1: $1.2910
Current price: $1.2833
Support 1: $1.2745
Support 2: $1.2590
Support 3: $1.2330
Comments: The dollar gained against the euro on speculation Barack Obama's victory in the U.S. presidential election and Democrat gains in Congress will accelerate policies aimed at overcoming a recession. As the nearest support acts area of МА (200) for Н1 on $1,2745. Overcoming of the given mark will open road to a level $1,2590 (76,4%FIBO growth $1,2330-$ 1,3290). Below there is a chance of return to $1,2330 (low of Oct 27 and 28). As intermediate resistance the level 50,0%FIBO falling $1,3290-$ 1,2590 on $1,2910 acts. Above is located the level $1,3000 (61,8 %). Overcoming of the given level will open road to $1,3080 (76,4 %).

High Low Close
EUR/USD 1.3048 1.2524 1.2980
USD/JPY 100.56 98.35 99.68
GBP/USD 1.6106 1.5603 1.5955
USD/CHF 1.1803 1.1565 1.1624

EUR/JPY 130.97 123.42 129.38
EUR/GBP 0.8147 0.7969 0.8133
GBP/JPY 161.79 153.71 159.08
GBP/CHF 1.8719 1.8343 1.8542

Change % Change Last
Nikkei +537.62 +6.27% 9,114.60
Topix +43.58 +5.00% 910.70
FTSE +196.22 +4.42% 4,639.50
DAX +251.20 +5.00% 5,278.04
CAC +163.12 +4.62% 3,691.09
Dow +305.45 +3.28% 9,625.28
NASDAQ +53.79 +3.12% 1,780.12
S&P +39.43 +4.08% 1,005.73
10yr Note -1.3900 -0.356% 3.765%
NYMEX Crude Oil +7.59 +11.88% 71.50
Gold +30.50 +4.20% 757.30

00:30 Australia Trade Balance (Sep) 1,46В 1364М
03:30 Japan BoJ's Governor Shirakawa Speech
08:55 Germany Purchasing Manager Index Services (Oct) 50.2
09:00 Е15 Purchasing Manager Index Services (Oct) 48,4
09:30 UK Manufacturing output (September) Y/Y -1.9%
09:30 UK Manufacturing output (September) -0.4%
09:30 UK Industrial production (September) Y/Y -2.3%
09:30 UK Industrial production (September) -0.6%
09:30 UK CIPS services index (October) 46,0
10:00 Е15 Retail sales (September) adjusted Y/Y -1,8%
10:00 Е15 Retail sales (September) adjusted 0,3%
13:15 USA ADP employment (October) -75К -8К
15:00 USA ISM Non-mfg composite index (October) 48,7 50,2
15:35 USA EIA Crude Oil Stocks change (Oct 31) 0,5М
21:45 New Zealand Unemployment Rate (3Q) 3,9%
23:50 Japan BoJ meeting minutes