Stocks momentarily fell to new session lows, but have since pared their losses. Still, the Dow is off by more than 140 points, which a stark comparison to when it sported a gain of more than 400 points early in the session.
Despite the downturn, Dow component's Bank of America (BAC 25.95, +3.16) and Citigroup (C 18.30, +2.55) continue to be a couple of the session's strongest performers. Both companies are expected to participate in the Treasury's plan to make up to $250 billion directly available to banks in the form of equity investments.

GS oil analysts say "WTI Crude Oil has held and recovered from the base of the bear channel at $75.35; the $90.17 prior wave low now offers resistance." Nov NYMEX crude trades currently at $80.72, down $0.47 on the day.

The S&P 500 posts a gain of 0.7%. Discover Financial Services (DFS 12.20, -1.60) settled an antitrust lawsuit with MasterCard (MA 179.70, +6.10) and Visa (V 58.75, -0.12), according to Reuters. The judge did not give the settlement details, although in 2004 Discover filed lawsuit seeking roughly $6 billion, according to the report.

The yen had its biggest two-day decline versus the euro in almost a month as global government support of banks encouraged investors to buy high-yielding assets funded by low-cost loans in Japan.
Japan's currency was poised for a record two-day drop versus the Australian dollar as the U.S. plan to inject $250 billion into banks raised speculation that investors will resume carry trades. The dollar fell against the euro and the pound as governments' efforts to revive bank lending reduced demand for the greenback as a haven.
``It's the unwinding of safe-haven positions,'' said Dustin Reid, a senior currency strategist at ABN Amro Bank NV in Chicago. ``The coordinated government intervention takes the probability of a 1930s-style depression off the table.''
Japan's currency pared its losses as the Standard & Poor's 500 Index fell 1 percent after initially gaining today and rallying yesterday the most in seven decades.
``You'd better play this rebound of the carry trade, but you'd be looking for opportunities to sell this rally in the next couple of weeks,'' said Stephen Malyon, co-head of currency strategy at Scotia Capital Inc. in Toronto. ``The honeymoon will end. We're facing a prolonged period of lackluster growth of the global economy.''
The London interbank offered rate, or Libor, for three-month dollar loans dropped 12 basis points to 4.64 percent, reflecting increased willingness of banks to lend.
Treasury Secretary Henry Paulson urged banks receiving capital injections to use the funds to spur economic growth. People familiar with the plan said nine financial institutions, including Citigroup Inc. and Goldman Sachs Group Inc., will get $125 billion.
European countries committed $1.8 trillion to guarantee loans and invest in lenders yesterday. Japan and Australia pumped $9.1 billion today into money markets after European leaders agreed to guarantee new debt from financial institutions and use taxpayer money to rescue banks.
Action in Europe may not prevent the euro from weakening, some currency strategists and investors said. Morgan Stanley predicts a decline in the euro to $1.25 by 2009, from the all- time high of $1.6038 in mid-July. Strategists at BNP Paribas see weakness after ``some support in the near term.''
``The euro was overbought, over-owned, over-rated and overvalued,'' said Stephen Jen, global head of currency research at Morgan Stanley in London. Jen correctly predicted in July that the euro would slump just as it began to weaken 15 percent from its record. ``The strategic view has to be that a global recession will keep seeing the euro sold off,'' he said.

Emphasises need to strengthen risk-management, stresses close sooperation among central banks.

The precious metal topped out at a 3-month high of $931 on safe-haven demand last Friday and then fell to $821 Monday as world central banks announced plans to recharge the banking sector. Strategists at Merrill Lynch say, in the big picture, gold should hold its safe-haven status overall, with future liquidity crises still likely. "Flight to safety" demand could send gold up to $1000 in the months to come, the strategists say. Renewed dollar weakness, if it occurs at the same time, could be a contributing factor that underpins gold further - towards $1200, they say. A new run-up in commodities would add another element. The current global bank bailout, seen as inflationary, could mean higher oil prices again ($150/bl). If gold maintains its long-run relationship with other commodities, "gold prices could well press higher to $1500," Merrill Lynch says.

The S&P 500 and Dow give up half of their opening advance, but continue to post strong gains. The tech sector (-1.2%) is a playing a major role in the pullback.
Qualcomm (QCOM 41.32, -0.98), Google (GOOG 369.99, -11.03), Microsoft (MSFT 24.31, -1.19), Amazon.com (AMZN 57.18, -4.78 ) and eBay (EBAY 17.99, -0.11) have all slipped into the red after opening with solid gains. Other notable tech names are still in positive territory, but are well off their best levels.
There is not a clear catalyst for the weakness in large-cap tech.
As a result, the tech-heavy Nasdaq 100 is down 1.8% compared to the broader market's advance of 1.1%.
Similar to yesterday, but to a lesser extent, commodities (+1.6%) are on the rise as the dollar (-1.0%) comes under selling pressure. Crude oil futures are up 1.0% to $82.01 per barrel.

WTI Nymex crude oil is at $82.00, +81 cents.

Barclays economist Ethan Harris says in these unusual times we should watch unemploy claims data as most timely (above 500k would signal real problems) and TARP (where Tsy could get another $350b if a report is submitted to Congress).

Barclays economist Ethan Harris says in these unusual times we should watch unemploy claims data as most timely (above 500k would signal real problems) and TARP (where Tsy could get another $350b if a report is submitted to Congress).

The S&P 500 opens with strong gains just one day after surging 11.6% -- its largest percent advance since the 1930s. Buying interest is fueled by the government's plan to shore up the financial system.
The Treasury will buy up to $250 billion in preferred stock from U.S. financial institutions. Participation in the plan is voluntary, although it appears that there will be plenty of firms taking the Treasury up on its offer. Nine of the largest financial institutions in the world will receive $125 billion, including Bank of America (BAC 26.62, +3.83), Citigroup (C 18.42, +2.68), JPMorgan Chase (JPM 43.25, +1.26), Morgan Stanley (MS 21.27, +3.17) and Wells Fargo (WFC 33.09, +2.68). To participate in the program, firms will have to agree to executive compensation limits, including the elimination of golden parachutes.
In addition, the FDIC will provide insurance for interbank lending and remove the $250,000 insurance limit on noninterest-bearing accounts.
European governments took similar actions yesterday.
The S&P 500 is now 24% above its multi-year intraday low reached last Friday.

Stocks were set to surge at Tuesday's Wall Street open, adding to the prior session's historic rally, as investors cheered the Bush administration's plan to recapitalize major banks: S&P futures vs fair value: +47.60. Nasdaq futures vs fair value: +51.50.



Stocks surged Monday, with the Dow industrials soaring some 936 points, or 11%, marking the largest-ever point advance for the blue-chip index. The S&P 500 and Nasdaq also hit point-gain records.
Investors reacted to global efforts over the weekend and into Monday aimed at unfreezing credit markets and getting money flowing through the pipelines.
Treasury trading resumes following the Columbus Day holiday, and could give a good indication of whether all the recent interventions are working.
On Tuesday, the Bush administration announced plans to recapitalize U.S. banks in an effort to end the credit freeze that has slammed the global economy. Among the moves announced: a $250 billion investment in nine major banks and a plan for the the Federal Deposit Insurance Corp. will back up new senior bank debt for three years.
In overseas trading, Japan's Nikkei, which was closed Monday, surged 14.2% and Hong Kong's Hang Seng rose 3.2%. In Europe, London's FTSE is up 5.8%, Germany's Dax is up 5.5% and France's CAC is up 5.5%.
Soft drink maker PepsiCo reported weaker-than-expected third-quarter earnings and said it would cut 3,300 jobs due to the global economic slowdown. Pepsi shares fell 3.8% in premarket trading.
Dow component Johnson & Johnson reported higher third-quarter earnings that beat expectations. J&J shares rose 5% in premarket trading.
Crude prices, meanwhile, stepped higher. Prices, which have plunged some 43% from the record $147.27 a barrel set on July 11, were up $3.21 at $84.40 a barrel early Tuesday.

EUR/USD $1.3700, $1.3800, $1.3610, $1.3660/65, $1.3975
USD/JPY Y102.70, Y101.00, Y100.00
EUR/JPY Y138.50

The yen fell against higher-yielding currencies after governments in the U.S., Europe and Australia pledged to support banks, encouraging investors to increase holdings of euros, British pounds and Australian dollars.
German investor confidence dropped for the first time in three months in October, to near a record low, as the global credit crisis threatened to tip Europe into a recession.
The ZEW Center for European Economic Research said its index of investor and analyst expectations slumped to minus 63 from minus 41.1 in September. The gauge reached an all-time low of minus 63.9 in July. Economists expected a decline to minus 51.1.
``The financial-market turmoil is the main cause for the drop in the index,'' Sandra Schmidt, an economist at ZEW, said in an interview on Bloomberg Television. ``There's concern that it will spread to the real economy.''
Europe's economy may be cushioned by falling oil prices, the euro's retreat and lower interest rates.
U.K. inflation quickened to the fastest pace in at least 11 years in September, squeezing consumers with higher living costs as the financial market crisis curbed the availability of credit.
Prices rose 5.2 percent from a year earlier, the most since records began in 1997, the Office for National Statistics said in London today. The median forecast of economists was 5 percent. Inflation has now exceeded the Bank of England's 2 percent target for a year.
``The weakness in the economy will be more than enough to bring inflation to target,'' said Nick Kounis, an economist at Fortis in Amsterdam and a former U.K. Treasury official. ``Today's reading isn't a barrier to further rate cuts. The bank is more worried about inflation undershooting the target now.''
The pound was little changed at $1.7502 after the report. Stocks recovered for a second day after the U.K. government bailed out banks including HBOS Plc and similar measures were adopted in Europe and the U.S

EUR/USD slowly extending its rally, but reported offers between $1.3750/55 making upside progress sticky. Stops are noted on a break of $1.3755, which if triggered seen bringing the tech target range between $1.3780/00 well into view.

GBP/USD extended recovery to $1.7630, currently holding back around $1.7610 as market awaits further details of TARP. Next band of reported offers seen placed between $1.7650/60, a break above to open a move toward $1.7680 ahead of $1.7700 and stronger interest at $1.7720. Bids $1.7650.

Cable extends recovery to $1.7630, currently holding back around $1.7610 as market awaits further details of TARP. Next band of reported offers seen placed between $1.7650/60, a break above to open a move toward $1.7680 ahead of $1.7700 and stronger interest at $1.7720. Bids $1.7650.

Rally has run into offers placed around the Asian peak at Y103.10/20, with dollar-yen now consolidating gains at Y102.85. Stops noted in the Y103.30 area, with additional supply then coming in at Y103.60/70.

The rate slowly extending its rally, but reported offers between $1.3750/55 making upside progress sticky. Stops are noted on a break of $1.3755, which if triggered seen bringing the tech target range between $1.3780/00 well into view.

The yen fell against higher-yielding currencies after governments in the U.S., Europe and Australia pledged to support banks, encouraging investors to increase holdings of euros, British pounds and Australian dollars.
German investor confidence dropped for the first time in three months in October, to near a record low, as the global credit crisis threatened to tip Europe into a recession.
The ZEW Center for European Economic Research said its index of investor and analyst expectations slumped to minus 63 from minus 41.1 in September. The gauge reached an all-time low of minus 63.9 in July. Economists expected a decline to minus 51.1.
``The financial-market turmoil is the main cause for the drop in the index,'' Sandra Schmidt, an economist at ZEW, said in an interview on Bloomberg Television. ``There's concern that it will spread to the real economy.''
Europe's economy may be cushioned by falling oil prices, the euro's retreat and lower interest rates.
U.K. inflation quickened to the fastest pace in at least 11 years in September, squeezing consumers with higher living costs as the financial market crisis curbed the availability of credit.
Prices rose 5.2 percent from a year earlier, the most since records began in 1997, the Office for National Statistics said in London today. The median forecast of economists was 5 percent. Inflation has now exceeded the Bank of England's 2 percent target for a year.
``The weakness in the economy will be more than enough to bring inflation to target,'' said Nick Kounis, an economist at Fortis in Amsterdam and a former U.K. Treasury official. ``Today's reading isn't a barrier to further rate cuts. The bank is more worried about inflation undershooting the target now.''
The pound was little changed at $1.7502 after the report. Stocks recovered for a second day after the U.K. government bailed out banks including HBOS Plc and similar measures were adopted in Europe and the U.S

Resistance 3: Y104.50
Resistance 2: Y103.50
Resistance 1: Y103.10
Current price: Y102.25
Support 1: Y101.80
Support 2: Y101.10
Support 3: Y100.45
Comments: The techn hasn't changed. The pair continues to be consolidated. The nearest resistance is Y103,10 (session high). Further is located level Y103,50 (area of July 16 and Sep 16 low). Above there is a probability of return to Y104,50 (Oct 3 low). The nearest support is located on Y101,80 (session low and also a level of 23,6 % FIBO of growth Y97,80-Y103,10). Below loss of a rate can will increase up to Y101,10 (38,2 %) and further to Y100,45.

Resistance 3: Chf1.1730
Resistance 2: Chf1.1500
Resistance 1: Chf1.1440
Current price: Chf1.1311
Support 1: Chf1.1305
Support 2: Chf1.1185
Support 3: Chf1.1090
Comments:The dollar has renewed decrease. At present the pair has again come nearer to support in the field of a session low on Chf1,1305 (and also a level of 23,6 %FIBO of growth Chf1,0680-Chf1,1500). Overcoming of the given mark will open road to Chf1,185 (38,2 %) and further to Chf1,090 (50,0 %). In case of renewal of growth by the nearest resistance there will be an area of a yesterday's high on Chf1.1440, above there is an opportunity of growth to Chf1,1500 Oct 6 high) and further to Chf1,1730 (the top border of the ascending channel from July 17).

- EMU inflation expectations dropped from 27 to -56
- Expect further reductions in ECB interest rates.
- Post-bailout survey shows Germany expectations at -50, not -63
- Bailout may help banks but not necessarily business cycle.

Resistance 3: $1.7925
Resistance 2: $1.7700
Resistance 1: $1.7560
Current price: $1.7478
Support 1: $1.7390
Support 2: $1.7260
Support 3: $1.6790
Comments: The dollar continues to remain under pressure. The pair has tested the nearest resistance in a session high on $1,7560. Above is possible growth to $1,7700 (50,0 % FIBO of falling $1,8675-$ 1,6790). Further is possible return to $1,7925 (61,8 %). As intermediate support acts the area of a session low on $1,7390. Below is located the level $1,7260 (23,6 %), further are possible falling to a Friday's low on $1,6790.

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 tech hasn't changed. The pair remains in the field of resistance on $1,3670 (yesterday's 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 possiblefalling to $1,3320 (61,8%FIBO growth $1,1630-$ 1,6040), then testing $1,3255 (Friday's low).

EUR/USD $1.3660/65, $1.3800, $1.3975
USD/JPY Y102.70, Y101.00, Y100.00(lge)
EUR/CHF Chf1.5550

The yen fell against higher-yielding currencies after governments in the U.S., Europe and Australia pledged to support banks, encouraging investors to increase holdings of euros, British pounds and Australian dollars.
The yen headed for a record 7.1 percent decline against the Australian dollar after Prime Minister Kevin Rudd allotted A$10.4 billion ($7.3 billion) in spending for home buyers, families and pensioners. The U.S. Treasury will buy stakes in banks including Citigroup Inc. and JPMorgan Chase & Co., people briefed on the plan said. European countries committed $1.8 trillion to guarantee bank loans and invest in lenders.
Shares rallied, with the MSCI Asia-Pacific Index of regional shares rising 9.3 percent, heading for the biggest gain in a decade. The Standard & Poor's 500 Index yesterday rose by the most in seven decades.
The Bush administration will spend about half of a total of $250 billion for stakes in banks, people briefed on the matter said. The banks are Citigroup, Wells Fargo & Co., JPMorgan, Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley, State Street Corp., and Bank of New York Mellon Corp., they said. Treasury Secretary Henry Paulson is scheduled to hold a press conference at 8:30 a.m. in Washington.
Losses in the dollar accelerated against the euro after the Fed said yesterday the European Central Bank, the Bank of England and the Swiss National Bank will offer financial institutions unlimited funds in the U.S. currency.
The London interbank offered rate, or Libor, for three- month dollar loans dropped 7 basis points to 4.75 percent yesterday, the British Bankers' Association said. Japan and Australia pumped $9.1 billion into money markets after European leaders agreed to guarantee new debt from financial institutions and use taxpayers' money to rescue banks.
Japan may halt sales of government-held shares to help protect financial markets from the global credit crisis, Finance Minister Shoichi Nakagawa said in a statement today. Japan will also take steps to tighten restrictions on short-selling, while relaxing regulations on share buybacks to limit the spread of the global financial crisis.

EUR/USD bargained in a range $1,3600-$ 1,3695.
GBP/USD having shown session high on $1,7560, the rate has receded in area $1,7410.
USD/JPY having established session high on Y103,10, the pair has receded in area Y102,00. Later the rate has continued to be consolidated in range Y102.00-Y102.50.

Germany ZEW economic expectations index (October) is due at 0900GMT, expected to come in at -52.0.
E15 ndustrial production (August) is due at 0900GMT. Expected to come in at 1.1% m/m, -1.7% y/y.
At 1800GMT, the US Treasury is expected to post a $45.0 billion surplus in the September tax month, leaving the full fiscal year gap much wider than the 2007 fiscal year due to a decline in receipts and rising outlays.

Japan's benchmark stock indices screamed higher Tuesday, recording their largest percentage gain on record. The Nikkei 225 gained 1171.2 points, to 14.15%, to stand at 9447.57. The broader-based TOPIX was ahead by 115.44 points to stand at 953.30. The gain was the highest recorded, beating the 13.4% one-day advance seen in the wake of the October 1987 crash.

Japan market was shut for a holiday.

European stocks rallied, sending the Dow Jones Stoxx 600 Index, Germany's DAX and France's CAC 40 to their biggest gains on record, as governments in Europe, the U.S. and Asia agreed to support banks.
Europe's regional benchmark rebounded from its steepest weekly slump ever, with UBS AG, Deutsche Bank AG and ING Groep NV jumping more than 12 percent after European leaders said they would guarantee new bank debt. Total SA increased 10 percent and BHP Billiton Ltd. rose 9.1 percent as oil climbed from a 13- month low and copper advanced.
Stocks increased after the U.S. Federal Reserve said central banks will offer financial institutions unlimited dollar funds and Europe pledged to guarantee bank debt issues and permit governments to buy stakes and recapitalize some distressed financial companies.
National benchmark indexes climbed more than 5 percent in 16 of the 17 western European markets that were open. The U.K.'s FTSE 100 jumped 7.1 percent. Germany's DAX advanced 11 percent. France's CAC 40 increased 11 percent as Total SA gained.
UBS, the European bank hardest hit by subprime-related losses, surged 12 percent to 19.1 Swiss francs. Deutsche Bank, Germany's biggest, rallied 12 percent to 35 euros. ING, the largest Dutch financial-services provider, gained 27 percent to 13.26 euros.
Goldman Sachs Group Inc. raised its recommendation on European banks to ``neutral'' from ``underweight,'' citing the recent decline in valuations and central bank action to reduce risks for the industry.
Barclays Dividend
Barclays Plc added 3.7 percent to 215.25 pence. The U.K.'s second-biggest bank plans to sell more than 6.5 billion pounds of shares to private investors without turning to the government for help and said it won't pay a final dividend for 2008.
Royal Bank of Scotland fell 8.4 percent to 65.7 pence, and HBOS dropped 28 percent to 90 pence. Lloyds TSB lost 14 percent to 162 pence.

U.S. stocks rallied after the market's worst week in 75 years, boosted by the government's plan to buy stakes in banks and a Federal Reserve-led push to flood the global financial system with dollars.
Morgan Stanley soared as much as 66 percent after sealing a $9 billion investment from Japan's Mitsubishi UFJ Financial Group In. Bank of America Corp. and Citigroup Inc. jumped more than 5 percent, while General Motors Corp. and Ford Motor Co., the largest U.S. automakers, climbed more than 25 percent each. The Standard & Poor's 500 Index rose the most since 1987 and Europe's benchmark index posted its best gain ever, helping the MSCI World Index rebound from its worst week on record.
The S&P 500 halted an eight-day losing streak, its longest since 1996. Last week's 18 percent declines pushed both the S&P 500 and Dow down more than 40 percent from their peaks last October. The S&P 500 ended last week trading for 17 times reported earnings of its companies, the cheapest valuation in more than a year.
Citigroup climbed 6.3 percent to $15, Bank of America added 5.6 percent to $22.21, Merrill Lynch & Co. climbed 5 percent to $16.53 and Goldman Sachs Group Inc. rallied 12 percent to $99.61.
Morgan Stanley
Morgan Stanley rose $5.54 to $15.22 and gained as much as $6.42. Morgan Stanley agreed to change the terms of its $9 billion investment from Mitsubishi UFJ Financial Group Inc., providing the Japanese bank with preferred stock that pays a 10 percent dividend instead of common stock.
Mitsubishi UFJ, Japan's biggest lender, will get 21 percent of the New York-based company as previously agreed, the two firms said today in a joint statement. The terms were renegotiated after the tumble in Morgan Stanley's shares last week.
Exxon Mobil Corp. climbed 5.6 percent to $65.85 after a 20 percent tumble last week. Oil gained as much as 6.2 percent to $82.52 a barrel today, rebounding from a 13-month low.
General Motors jumped 32 percent to $6.46, the biggest gain in the Dow average, and Ford added 26 percent to $2.51. GM, the largest U.S. automaker, is in talks with Cerberus Capital Management LP's Chrysler LLC about a merger or partnership, five people with direct knowledge of the discussions said. Ford, the second-largest, is considering selling its controlling stake in Japan's Mazda Motor Corp., a person familiar with the matter said.
Freeport-McMoRan Copper & Gold Inc. added 7.8 percent to $39.20 as copper on the London Metal Exchange rebounded from a 33-month low.
Apple Inc. rose 7.7 percent to $104.22. Sanford C. Bernstein & Co. analyst Toni Sacconaghi upgraded the maker of Macintosh computers and the iPhone to ``outperform'' from ``market perform,'' saying the shares are ``overly discounted'' after plunging 46 percent in two months.

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.
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.

EUR/USD on results enough changeable session the pair could will become stronger up to $1,3600, having shown before it a session high on $1,3682.
GBP/USD the rate has established session low on $1,6923 then has raised up to $1,7440. In the end of session the pair was corrected in area $1,7300.
USD/JPY has established session low in the field of Y99,50, the pair could finish the tenders above level Y102,00.

UK inflation data is due at 0830GMT with the CPI expected to come in at 0.4% m/m, 5.0% y/y. This will mean CPI inflation reaches a fresh series high in September and may break above 5% on the back of higher utility bills.
Germany ZEW economic expectations index (October) is due at 0900GMT, expected to come in at -52.0.
E15 ndustrial production (August) is due at 0900GMT. Expected to come in at 1.1% m/m, -1.7% y/y.
At 1800GMT, the US Treasury is expected to post a $45.0 billion surplus in the September tax month, leaving the full fiscal year gap much wider than the 2007 fiscal year due to a decline in receipts and rising outlays.

Resistance 3: Y104.50
Resistance 2: Y103.50
Resistance 1: Y103.10
Current price: Y102.22
Support 1: Y101.80
Support 2: Y101.10
Support 3: Y100.45
Comments: The yen fell for a second day against the dollar as increased support for banks by European and the U.S. governments encouraged investors to add to holdings of high-yielding assets funded in the Japanese currency - practice known as carry trades. The nearest resistance is Y103,10 (session high). Further is located level Y103,50 (area of July 16 and Sep 16 low). Above there is a probability of return to Y104,50 (Oct 3 low). The nearest support is located on Y101,80 (session low and also a level of 23,6 % FIBO of growth Y97,80-Y103,10). Below loss of a rate can will increase up to Y101,10 (38,2 %) and further to Y100,45.

Resistance 3: Chf1.1730
Resistance 2: Chf1.1500
Resistance 1: Chf1.1440
Current price: Chf1.1349
Support 1: Chf1.1305
Support 2: Chf1.1185
Support 3: Chf1.1090
Comments:Upside risks still prevail. The pair has tested support in the field of a session low on Chf1,1305 (and also a level of 23,6 %FIBO of growth Chf1,0680-Chf1,1500). Overcoming of the given mark will open road to Chf1,185 (38,2 %) and further to Chf1,090 (50,0 %). In case of renewal of growth by the nearest resistance there will be an area of a yesterday's high on Chf1.1440, above there is an opportunity of growth to Chf1,1500 Oct 6 high) and further to Chf1,1730 (the top border of the ascending channel from July 17).

Resistance 3: $1.7925
Resistance 2: $1.7700
Resistance 1: $1.7560
Current price: $1.7478
Support 1: $1.7390
Support 2: $1.7260
Support 3: $1.6790
Comments: U.K. government said it will invest in banks. That continues to render a sterling support. The nearest resistance is presented by area of a session high on $1,7560. Above is possible growth to $1,7700 (50,0 % FIBO of falling $1,8675-$ 1,6790). Further is possible return to $1,7925 (61,8 %). As intermediate support acts the area of a session low on $1,7390. Below is located the level $1,7260 (23,6 %), further are possible falling to a Friday's low on $1,6790.

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 euro rose against the dollar after European leaders agreed to guarantee bank borrowing and prevent failures that would further batter the credit markets. The pair tests resistance on $1,3670 (yesterday's 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 possiblefalling to $1,3320 (61,8%FIBO growth $1,1630-$ 1,6040), then testing $1,3255 (Friday's low).

High Low Close
EUR/USD 1.3682 1.3455 1.3593
USD/JPY 102.16 99.53 101.99
GBP/USD 1.7441 1.6923 1.7409
USD/CHF 1.1441 1.1244 1.1375

EUR/JPY 138.79 134.20 138.65
EUR/GBP 0.7964 0.7779 0.7807
GBP/JPY 177.68 168.66 177.56
GBP/CHF 1.9820 1.9251 1.9805

Change % Change Last
FTSE +324.84 +8.26% 4,256.90
DAX +518.14 +11.40% 5,062.45
CAC +355.01 +11.18% 3,531.50
DOW +936.42 +11.08% 9,387.61
NASDAQ +194.74 +11.81% 1,844.25
S&P 500 +104.13 +11.58% 1,003.35
10YR 29/32 100 31/32 Yield: 3.88%
OIL +3.49 +4.49% $81.19

00:30 Australia National Australia Bank's Business Conditions (Sep) -7
05:00 Japan Consumer Confidence Households (Sep) 31.5
05:00 Japan Consumer Confidence (Sep) 30.1
08:30 UK Retail Price Index (YoY) (Sep) 4.8%
08:30 UK Retail Price Index (MoM) (Sep) 0.3%
08:30 UK Core Consumer Price Index (YoY) (Sep) 2,0%
08:30 UK Consumer Price Index (YoY) (Sep) 4,7%
08:30 UK Consumer Price Index (MoM) (Sep) 0,6%
09:00 E15 Industrial production (August), YoY -1,7% -1,7%
09:00 E15 Industrial production (August) 1,1% -0,3%
09:00 Germany ZEW economic expectations index (October) -52.0 -41.1
18:00 USA Federal budget (September), bln +54.3 -111.9
23:50 Japan Balance of payment (Aug) -17,3%