Apple Inc The technology company was upgraded to “buy,” but its price target was cut to $135, by Sanford Bernstein.

Advanced Micro Devices, Inc The technology company said Monday that the U.S. Department of Justice has closed its investigation into ATI Technologies' (which AMD had acquired) pricing and marketing practices in the sale of graphics processing units.

Citigroup, Inc The bank had its ratings put on review for a possible downgrade by both Standard & Poor's and Moody's, despite the bank's lost bid for Wachovia.

Morgan Stanley announced Monday that it has sold 21% of itself to Japanese banking giant Mitsubishi UFJ Financial Group for $9B in stock.

Spanish bank Banco Santander confirms that it is negotiating to acquire Philadelphia-based Sovereign Bancorp. The deal is reportedly valued at $2.5B.

Wachovia Corp The Federal Reserve Board said Sunday it has approved the application by Wells Fargo to acquire the bank. The deal is expected to close by the end of the year.

Stocks climb to their best levels of the session. All ten of the major economic sectors are sporting gains of 5% or more.
The session's advance, thus far, has given the Dow its largest single-session point advance in history. 28 of its 30 components are trading higher.
JPMorgan Chase (JPM 40.88, -0.76) and General Electric (GE 21.21, -0.29) are the only two companies listed in the Dow Jones Industrial Average failing to participate in the session's rally. Reuters reported earlier today that General Electric considered a bank charter that would give it access to government lending channels. General Electric remains one of the few corporations to hold a AAA credit rating.

EUR/USD $1.3650, $1.3850, $1.3900
USD/JPY Y100.00, Y100.50, Y98.00, Y101.75, Y102.45
EUR/GBP stg0.8000

The major indices extend their gains, with the Dow briefly surpassing the 9000 level.
Tech stocks (+7.7%) are seeing a notable rebound this session, helping the Nasdaq 100 (+7.3%) outperform. Apple (AAPL 105.31, +8.51), Microsoft (MSFT 24.01, +2.50) and Google (GOOG 365.34, +33.34) are all showing notable strength. Sears Holdings (SHLD 68.58, -2.34), the only Nasdaq 100 component to post a loss this session, is down 3.3%

The euro rose the most in three weeks against the dollar and yen after European leaders agreed to guarantee bank borrowing and prevent failures that would further batter the credit markets.
The U.S. currency fell versus the Mexican peso and Australian dollar as the Federal Reserve and three other central banks announced unlimited dollar auctions, reducing demand for the greenback for funding among financial firms. Brazil's real, South Korea's won and the peso led a rally in emerging-market currencies as the Group of Seven nations pledged over the weekend to take ``all necessary steps'' to stem the market turmoil.
``It helps restore market confidence and avert further financial meltdown,'' said Brian Kim, a currency strategist at UBS AG in Stamford, Connecticut. ``It's positive for risky assets. If financial institutions stabilize, there's less of a flight toward the dollar.''
Foreign-exchange movements may be exaggerated because trading volumes are lower than normal due to public holidays in Japan, the U.S. and Canada, according to Takashi Yamamoto, chief trader at Mitsubishi UFJ Trust & Banking Corp. in Singapore.
The pound rose for the first time in four days, gaining 2.2 percent to $1.7423, as the U.K. government said it will invest in banks. Royal Bank of Scotland Group Plc, HBOS Plc, and Lloyds TSB Group will get 37 billion pounds ($64.4 billion), the government said in a Regulatory News Service statement. The funding will allow the banks to boost their so-called Tier One capital ratio to more than 9 percent.
European policy makers meeting in Paris yesterday pledged to guarantee until the end of 2009 bank-debt issues with maturities up to five years. Plans to recapitalize banks in the region will cost 300 billion euros ($409.7 billion), according to Goldman Sachs Group Inc.
``The rebound in the euro, and in sterling, is a direct response to the clarity of bailout plans in the euro zone and the U.K.,'' said Simon Derrick, head of currency strategy in London at Bank of New York Mellon Corp. ``In the medium-term, this means a surge in national debt which won't bode well for these currencies. In the near-term, the plans give investors confidence that there won't be further banking failures.''

Bullion has lost around $20 in the past 30 minutes. Support is at $820.00 and break favours $810.82 -- 61.8% of $737.00-$930.25 move.

The major indices trade at or near session highs. The S&P 500 will break an eight session losing streak if it manages to end the session with a gain.
U.S. automakers, which have been hit very hard by the economic turmoil, are rallying this session. General Motors (GM 6.49, +1.60) is up 33% and Ford (F 2.51, +0.52) is up 26%. It was reported over the weekend that GM and privately held Chrysler held merger talks, although the Wall Street Journal reported that GM's board gave a "cool reception" to the merger. Despite today's gains, GM and Ford are down 85% and 72%, respectively, from their 52-week highs.

Edging toward earlier rally highs at $1.3671, with offers noted around this level. A break and clear above here to open a move on toward $1.3690/00 ahead of $1.3730/40.
Traders note that the 200 hour (not day) m/a line comes through today at $1.3695, adding that rate has not been above this level since Sep29. This technical level expected to strengthen reported offers placed to $1.3700, with stops earlier reported to be building above the figure.

The major indices trade at or near session highs. The S&P 500 will break an eight session losing streak if it manages to end the session with a gain.
U.S. automakers, which have been hit very hard by the economic turmoil, are rallying this session. General Motors (GM 6.49, +1.60) is up 33% and Ford (F 2.51, +0.52) is up 26%. It was reported over the weekend that GM and privately held Chrysler held merger talks, although the Wall Street Journal reported that GM's board gave a "cool reception" to the merger. Despite today's gains, GM and Ford are down 85% and 72%, respectively, from their 52-week highs.

Edging toward earlier rally highs at $1.3671, with offers noted around this level. A break and clear above here to open a move on toward $1.3690/00 ahead of $1.3730/40.
Traders note that the 200 hour (not day) m/a line comes through today at $1.3695, adding that rate has not been above this level since Sep29. This technical level expected to strengthen reported offers placed to $1.3700, with stops earlier reported to be building above the figure.

Bullion has lost around $20 in the past 30 minutes. Support is at $820.00 and break favours $810.82 -- 61.8% of $737.00-$930.25 move.

The major indices are posting gains of more than 5% in broad-based strength -- all ten of the major indices are up at least 4%. The S&P 500 is up more than 12% from its multi-year intraday low that was reached on Friday.
Within the S&P 500, 91% of stocks are posting a gain. Microsoft (MSFT 23.17, +1.67) and Johnson & Johnson (JNJ 49.94, +4.09) are providing leadership. General Electric (GE 21.11, -0.39) and JPMorgan Chase (JPM 40.41, -1.20) are the main laggards.

The major indices dip from opening highs, but still sport gains of roughly 4%. Buying interest is broad-based, led by telecom (+5.6%) and healthcare (+5.7%) stocks.
General Electric (GE 21.30, -0.23) -- the second largest U.S. company by market cap behind Exxon Mobil (XOM 64.27, +2.06) -- is failing to participate in this session's rally despite GE's diversified business portfolio. The industrial sector is underperforming on a relative basis with a gain of 2.0%.
Commodities (+1.0%) and oil (+3.6% at $80.45) are posting strong gains, although they have retreated from earlier levels. The dollar is up 2.2% against a basket of world currencies.
The bond market is closed in observance of Columbus day.

- German govt plan to limit confidence crisis in markets
- Banks will be able to lend money with stronger confidence
- Citizens can be sure of their deposits

- Interbank guarantee covers only senior instruments.

Breaks back above Y137.00 as euro-dollar probes the topside, bringing the European highs at Y137.75 back into focus. Little noted on the orderboards on a steeper move ahead of offers at Y139.60/70, in line with last Thursday's peak.

The stock market soars at the open as global markets rally after several governments took steps to improve liquidity and shore up confidence.
The Fed and other central announced plans to provide as much liquidity as needed in short term funding markets. In additions, the U.K. government plans to inject up to $63 billion in three U.K. banks. Germany will guarantee up to 400 billion euros in interbank lending.
Morgan Stanley (MS 15.00, +5.32) and Mitsubishi UFJ Financial confirmed the closing of a $9 billion, or 21%, investment in MS. Under the terms of the deal, MUFG acquired $7.8 billion perpetual noncumulative convertible preferred stock at a 10% dividend and a conversion price of $25.25. MUFG also acquired $1.2 billion of perpetual noncumulative nonconvertible preferred stock with a 10% dividend.

- Final vote in parliament on measures on Friday

Futures for U.S. stocks were sharply highe: S&P futures vs fair value: +31.90. Nasdaq futures vs fair value: +55.30 - indicating a good start. U.S. bond markets will be closed Monday for the Columbus Day holiday but stock markets will be open.

The euro rose the most in three weeks against the dollar after European leaders agreed to guarantee bank borrowing and prevent failures that would further batter the credit markets.
Europe's single currency also strengthened versus the yen as leaders of the 15 countries using the euro endorsed bailing out ``systemically'' critical banks in distress. The British pound advanced against the dollar on speculation the government's bailout plan will avert a banking collapse.
``The rebound in the euro, and in sterling, is a direct response to the clarity of bailout plans in the euro zone and the U.K.,'' said Simon Derrick, head of currency strategy in London at Bank of New York Mellon Corp. ``In the medium-term, this means a surge in national debt which won't bode well for these currencies. In the near-term, the plans give investors confidence that there won't be further banking failures.''
European policy makers meeting in Paris yesterday pledged to guarantee until the end of 2009 bank-debt issues with maturities up to five years. Plans to recapitalize banks in the region will cost 300 billion euros ($406 billion), according to Goldman Sachs Group Inc.
``The current financial woes will likely be gradually resolved in the long term,'' said Mitsubishi UFJ Trust's Yamamoto. ``The euro may strengthen.''
Losses in the dollar accelerated after the Fed said today the European Central Bank and its counterparts will offer financial institutions unlimited funds in the U.S. currency, providing easier access to the U.S. currency in response to demand for dollar loans.
The ECB, the Bank of England and the Swiss National Bank will conduct dollar auctions at maturities of seven days, 28- days and 84-days at a fixed interest rate, the Fed said on its Website.
Gains in the euro may be limited by speculation the ECB will lower borrowing costs to stimulate the economy, reducing the 15-nation region's interest-rate advantage over the U.S. and Japan, according to UBS AG.
``Over a longer-time horizon, if we avoid a meltdown in the financial system, evolving yield differentials should be supportive of the yen and the U.S. dollar, as European countries have further room to cut interest rates in response to slowing global growth,'' wrote Ashley Davies, a currency strategist in Singapore at UBS, in a research note today.
The economy of the euro region, where the benchmark interest rate is 3.75 percent, will expand 1.35 percent this year and 1 percent in 2009, according to the median of forecasts. Growth in the U.S., whose key rate is 1.5 percent, will be 1.6 percent this year and 1.2 percent in 2009, a separate survey of 75 economists showed.
The yen may extend gains against the U.S. dollar as Japanese investors start selling some of their more than $1.3 trillion in overseas assets to bring money home because of a global slump in equities, JPMorgan Chase & Co. said.

EUR/USD it continues to be consolidated in the field of $1,3560-$ 1,3670.
GBP/USD having raised above a level $1,7300 the pair has updated a session high.
USD/JPY bargains within the limits of Y100,15-Y100,85.

In second half of day today it is not expected publications of economic data. Financial markets of the USA and Canada today are closed in connection with national holidays.

- Other factors now may be sharpening that
- Main task now is to stabilise financial system
- Monetary policy not main driver of crisis in UK at least
- Main lessons of crisis for financial system operation.

The euro rose the most in three weeks against the dollar after European leaders agreed to guarantee bank borrowing and prevent failures that would further batter the credit markets.
Europe's single currency also strengthened versus the yen as leaders of the 15 countries using the euro endorsed bailing out ``systemically'' critical banks in distress. The British pound advanced against the dollar on speculation the government's bailout plan will avert a banking collapse.
``The rebound in the euro, and in sterling, is a direct response to the clarity of bailout plans in the euro zone and the U.K.,'' said Simon Derrick, head of currency strategy in London at Bank of New York Mellon Corp. ``In the medium-term, this means a surge in national debt which won't bode well for these currencies. In the near-term, the plans give investors confidence that there won't be further banking failures.''
European policy makers meeting in Paris yesterday pledged to guarantee until the end of 2009 bank-debt issues with maturities up to five years. Plans to recapitalize banks in the region will cost 300 billion euros ($406 billion), according to Goldman Sachs Group Inc.
``The current financial woes will likely be gradually resolved in the long term,'' said Mitsubishi UFJ Trust's Yamamoto. ``The euro may strengthen.''
Losses in the dollar accelerated after the Fed said today the European Central Bank and its counterparts will offer financial institutions unlimited funds in the U.S. currency, providing easier access to the U.S. currency in response to demand for dollar loans.
The ECB, the Bank of England and the Swiss National Bank will conduct dollar auctions at maturities of seven days, 28- days and 84-days at a fixed interest rate, the Fed said on its Website.
Gains in the euro may be limited by speculation the ECB will lower borrowing costs to stimulate the economy, reducing the 15-nation region's interest-rate advantage over the U.S. and Japan, according to UBS AG.
``Over a longer-time horizon, if we avoid a meltdown in the financial system, evolving yield differentials should be supportive of the yen and the U.S. dollar, as European countries have further room to cut interest rates in response to slowing global growth,'' wrote Ashley Davies, a currency strategist in Singapore at UBS, in a research note today.
The economy of the euro region, where the benchmark interest rate is 3.75 percent, will expand 1.35 percent this year and 1 percent in 2009, according to the median of forecasts. Growth in the U.S., whose key rate is 1.5 percent, will be 1.6 percent this year and 1.2 percent in 2009, a separate survey of 75 economists showed.
The yen may extend gains against the U.S. dollar as Japanese investors start selling some of their more than $1.3 trillion in overseas assets to bring money home because of a global slump in equities, JPMorgan Chase & Co. said.

Resistance 3: Y102.70
Resistance 2: Y101.50
Resistance 1: Y101.20
Current price: Y100.58
Support 1: Y99.50
Support 2: Y98.50
Support 3: Y97.90
Comments: Tech on yen hasn't changed. The nearest resistance is Y101,20 (session high). Further is located level Y101,50/65 (area of Wednesday-Thursday highs). Above there is a probability of return to Y102,70 (38,2 % FIBO of falling Y110,70-Y97,90). The nearest support is located on Y99,50 (session low). Below loss of a rate can will increase up to Y98,50 and further to Y97,90 (Friday's low).

GERMANY: total volume of German financial rescue plan is E470bln (E400bln in guarantees and E70bln bank recapitisation).
FRANCE: French state bank guarantees limited to E300bln and will run until to end 2009.
UK: UK government announced Monday it was making stg37 billion of capital investments in leading UK banking group's, RBS and Lloyd's/TSB when the merger between the latter two is completed.

Resistance 3: Chf1.1700
Resistance 2: Chf1.1500
Resistance 1: Chf1.1410
Current price: Chf1.1335
Support 1: Chf1.1270
Support 2: Chf1.1125
Support 3: Chf1.1085
Comments:After unsuccessful testing area of a session low, the rate has receded back. Resistance is located in the field of a session high on Chf1.1410 and in the field of Oct 6 high on Chf1,1500. Above is possible growth to the top border of the ascending channel from July 17. As the nearest support acts the area of a session low on Chf1,1260/70. Further are possible losses of a rate up to Chf1,1125 and Chf1,1085.

Resistance 3: $1.7660
Resistance 2: $1.7400
Resistance 1: $1.7230
Current price: $1.7206
Support 1: $1.6920
Support 2: $1.6540
Support 3: $1.5750
Comments: The pair tests resistance in the field of a session high on $1,7230. Further is possible return to $1,7400 (Thursday's high) and to $1,7660 (area of of the last week high).
Support is located in the field of a session low on $1,6920, stronger level is $1,6540 (61,8 % FIBO from growth $1,3670-$ 2,160), further are possible falling to $1,5450 (76,4 %).

Resistance 3:$1.3900
Resistance 2: $1.3780
Resistance 1: $1.3670
Current price: $1.3645
Support 1: $1.3450
Support 2: $1.3320
Support 3: $1.3255
Comments: The pair continues to be consolidated in the field of дотигнутых levels. As the nearest resistance acts the area $1,3670 (session high). Further follows $1,3780 (area of Oct 9 high) which overcoming will open road to Oct 3 high on $1,3900/10. Support is marked in the field of a session low on $1,3450/40 ($1,3440 - area of Oct 6 low), further is possible falling to $1,3320 (61,8 % FIBO of growth $1,1630-$ 1,6040) then testing $1,3255 (Friday's low).

EUR/USD $1.3650, $1.3850, $1.3900
USD/JPY Y100.00(lge), Y98.00, Y101.75, Y102.45

The euro rose the most in three weeks against the dollar after European leaders agreed to guarantee bank borrowing and prevent failures that would disrupt credit markets.
The currency advanced versus the greenback, snapping two days of losses, as leaders of the 15 countries using the euro meeting in Paris endorsed bailing out ``systemically'' critical banks in distress. The yen climbed against the dollar as Asian stocks pared gains, adding to concern that Japanese investors will sell higher-yielding overseas assets.
The euro rose 0.7 percent, the most since Sept. 22, to $1.3507 at 12:46 p.m. in Tokyo, from $1.3408 late in New York on Oct. 10. It advanced 0.2 percent to 135.15 yen, from 134.96 at the end of last week. The dollar declined 0.6 percent to 100.10 yen.
Foreign-exchange movements may be exaggerated because trading volumes are lower than normal due to a Japanese public holiday today, according to Yamamoto.
Europe's single currency gained for the first day in three against the dollar as European Central Bank President Jean- Claude Trichet said the ECB will examine ways to widen its collateral rules after governments asked it to set up a facility to buy commercial paper.
Gains in the euro may be limited by speculation the European Central Bank will lower borrowing costs to stimulate the economy, reducing the 15-nation region's interest-rate advantage over the U.S. and Japan, according to UBS AG.
The yen climbed as the MSCI Asia-Pacific Index of regional shares excluding Japan trimmed its gain to 1.6 percent from as much as 4.2 percent earlier in Asian trade.

EUR/USD having established session low on $1.3455, the pair has become stronger in area $1,3650 where it continues to be consolidated at present.
GBP/USD having decreased in the beginning of the tenders up to a mark $1,6923, in a consequence the pair has become stronger in area $1,7230.
USD/JPY having established a session low on Y99,50, the rate has risen above mark Y100,00.

Today is expected the publication only UK data - PPI 08:30 GMT.

PPI (Input) (September) unadjusted Y/Y 24.5
PPI (Input) (September) adjusted -1.2%
PPI Output ex FDT (September) unadjusted Y/Y
PPI Output ex FDT (September) adjusted -0.1%
PPI (Output) (September) unadjusted Y/Y 8.5%
PPI (Output) (September) unadjusted 0.3%

The stock market posted its eighth consecutive loss in an extremely volatile session, which marked a fitting end to one of the most tumultuous weeks ever. The S&P 500 settled with a loss of 1.2%, which was actually a pretty decent result considering how far it was down at session lows.
For the week, the Dow, Nasdaq and S&P 500 declined 18.2%, 15.3% and 18.2%, respectively. For the year, the Dow, Nasdaq and S&P 500 are down 36.3%, 37.8% and 38.8%, respectively.

Europe's currency is on course for its second straight weekly decline versus the dollar on speculation the credit crisis in Europe will deepen, prompting the European Central Bank to cut interest rates further. The bank lowered its main refinancing rate two days ago for the first time in five years. The pound fell as much as 1.8 percent to $1.6792, breaching $1.70 for the first time since November 2003.

China A-shares finished the morning session sharply lower as resources stocks slumped on persistent worries that a slowing global economy will reduce demand for raw materials. The benchmark Shanghai Composite Index ended the morning down 68.82 points or 3.44% at 1,931.75. The Shanghai A-share Index was down 72.22 points or 3.44% at 2,029.07, while the Shenzhen A-share Index fell 23.74 points or 4.25% to 534.60.

Resistance 3: Y102.70
Resistance 2: Y101.50
Resistance 1: Y101.20
Current price: Y100.67
Support 1: Y99.50
Support 2: Y98.50
Support 3: Y97.90
Comments: The yen climbed as the MSCI Asia-Pacific Index of regional shares excluding Japan trimmed its gain to 1.6 percent from as much as 4.2 percent earlier in Asian trade. The nearest resistance is Y101,20 (session high). Further is located level Y101,50/65 (area of Wednesday-Thursday highs). Above there is a probability of return to Y102,70 (38,2 % FIBO of falling Y110,70-Y97,90). The nearest support is located on Y99,50 (session low). Below loss of a rate can will increase up to Y98,50 and further to Y97,90 (Friday's low).

Resistance 3: Chf1.1700
Resistance 2: Chf1.1500
Resistance 1: Chf1.1410
Current price: Chf1.1335
Support 1: Chf1.1270
Support 2: Chf1.1125
Support 3: Chf1.1085
Comments:Treasury Secretary Henry Paulson said Oct. 10 that the government will buy equity ``as soon as we can'' in banks and other financial institutions to weather the worst credit crisis in seven decades. The Treasury Department said yesterday Paulson is studying Europe's plan to provide a backstop for debt issued by banks. The pair remains within the limits of the ascending channel since July 17 which top border is strong area of resistance. Below the given level resistance is located in a session high on Chf1.1410 and in the a Oct 6 high on Chf1,1500. As the nearest support acts the area of a session low on Chf1,1270. Further are possible up losses of a rate to Chf1,1125 and Chf1,1085

Resistance 3: $1.7660
Resistance 2: $1.7400
Resistance 1: $1.7230
Current price: $1.7214
Support 1: $1.6920
Support 2: $1.6540
Support 3: $1.5750
Comments: Traders added to bets policy makers will lower borrowing costs again after cutting the main rate by half a percentage point on Oct. 8, in concert with other major central banks worldwide. The pair has receded from are reached on Friday's low, but essential changes of a tech haven't occured. Support is located in the field of a session low on $1,6920, stronger level is $1,6540 (61,8 % FIBO from growth $1,3670-$ 2,160), further are possible falling to $1,5450 (76,4 %). Resistance is located in a session high on $1.7230. Further is possible return to $1,7400 (Thursday's high) and to $1,7660 (area of of the last week high).

Resistance 3:$1.3980
Resistance 2: $1.3780
Resistance 1: $1.3740
Current price: $1.3630
Support 1: $1.3450
Support 2: $1.3320
Support 3: $1.3255
Comments: The euro rose the most in three weeks against the dollar after European leaders agreed to guarantee bank borrowing and prevent failures that would disrupt credit markets. As the nearest resistance acts the area $1,3740 (area of Oct 2 kow and high 7-8). Further follows $1,3780 (area of Oct 9 high) which overcoming will open road to Oct 3 high on $1,3900/10. Support is marked in the field of a session low on $1,3450/40 ($1,3440 - area of Oct 6 low), further is possible falling to $1,3320 (61,8 % FIBO of growth $1,1630-$ 1,6040) then testing $1,3255 (Friday's low).

EUR/USD 1.3651 1.3254 1.3410
USD/JPY 100.70 97.88 100.34
GBP/USD 1.7180 1.6784 1.7037
USD/CHF 1.1410 1.1126 1.1332

EUR/JPY 136.32 132.22 134.55
EUR/GBP 0.8068 0.7848 0.7869
GBP/JPY 172.15 165.94 170.95
GBP/CHF 1.9405 1.8860 1.9312

Change % Change Last
Nikkei -881,06 -9,62% 8 276,43
TOPIX -62,47 -6.90% 842,64
FTSE -381.74 -8.85% 3,932.06
DAX -342.69 -7.01% 4,544.31
CAC -266.21 -7.73% 3,176.49
Dow -128.00 -1.49% 8,451.19
NASDAQ +4.39 +0.27% 1,649.51
S&P -10.70 -1.18% 899.22
10yr Note +0.2700 +0.070% 3.861%
NYMEX Crude Oil -8.89 -11.44% 77.70
Gold -27.50 -3.20% 859.00

00:00 USA Columbus Day
00:00 Canada Thanksgiving Day
00:00 Japan Health-Sports Day
08:30 UK PPI (Input) (September) unadjusted Y/Y -19.8% 26.2%
08:30 UK PPI (Input) (September) adjusted -1.4% -2.0%
08:30 UK PPI Output ex FDT (September) unadjusted Y/Y 5.9% 6.4%
08:30 UK PPI Output ex FDT (September) adjusted -0.3%
08:30 UK PPI (Output) (September) unadjusted Y/Y 9,0% 9,7%
08:30 UK PPI (Output) (September) unadjusted -0.2% -0.6%