Mkt starting to price in more aggressive Fed easing as stocks tank and as Bernanke offers some support for the short-end of the curve, noting a slowing in export sales likely forthcoming. For the Oct FOMC, the mkt now sees nearly a 50/50 chance for a 50bps ease after pricing in about 10% of such an occurance yest.

Barclays Capital technical strategist say the parallels between the 2007 Dow Jones Industrial Average high to the present and the 1906-1907 period are "striking," with market swings "in both percentage and form" nearly identical. They are bullish on stocks in the near-term after the DJIA appeared to bottom last week. The strategists stress however that the monthly close will be critical. "A close at current levels or better would leave a similar monthly candle to the one seen in November 1907, indicating that the analogy is holding strong," they say. The most bullish scenario would be that last week's low (7882.51 Oct 10) represents the low of a multi-year range trade that precedes a secular trend. "In this ideal trajectory, there are likely to be many cyclical bull and bear trends," the strategists say.

Losses remain heavy in the major indices. The Dow, Nasdaq, and S&P 500 have all fallen another leg lower to new session lows.
Market breadth remains bearish. 98% of the companies in the S&P 500 are trading with losses, while 29 of the 30 Dow components are in the red.
Coca-Cola (KO 45.06, +1.33) is the only Dow component making gains. Coke announced this morning upbeat earnings per share results for its latest quarter. It was the eighth straight quarter in which Coke logged double-digit earnings per share growth, and at least as many in which the results surpassed the consensus estimate.
Just hitting the wires, the Fed's Beige Book indicated a weakening of economic activity across all 12 districts.

Oil holds near $74.93, down $3.60, still above morning low at $74.57.

The yen rose for the first time in five days against the dollar on speculation the U.S. plan to invest $250 billion in financial institutions won't prevent the world's largest economy from falling into a recession.
Japan's currency gained versus the euro and the South African rand as stocks dropped globally, encouraging investors to sell higher-yielding assets and pay back low-cost loans in Japan. The dollar extended its losses after a government report showed U.S. retail sales declined the most in three years.
``This market is still skittish,'' said Jon Gencher, director of currency sales at BMO Capital Markets in Toronto. ``If equities take a nosedive, the yen will be in favor.''
U.S. retail sales decreased 1.2 percent in September, the most since August 2005, following a 0.4 percent drop in the prior month, the Commerce Department reported today in Washington. Federal Reserve Bank of San Francisco President Janet Yellen said yesterday in a speech in Palo Alto, California, that the economy ``appears to be'' in a recession.
``Concerns over a U.S. recession may now intensify as those over a financial crisis have abated for the time being,'' said Masafumi Yamamoto, head of foreign-exchange strategy for Japan at Royal Bank of Scotland Plc in Tokyo and a former Bank of Japan currency trader. ``These worries may lead to dollar selling, yen buying.''
Money-market rates fell for a third day, fueling speculation that the global bailouts are starting to thaw credit markets. The London interbank offered rate, or Libor, that banks charge each other for three-month dollar loans dropped 9 basis points, or 0.09 percentage point, to 4.55 percent, the British Bankers' Association said.
The dollar rose to the highest level versus the euro since March 2007 on Oct. 10, partly because banks' reluctance to lend to each other spurred a surge in demand for U.S. currency funding in global money markets. The U.S. Treasury announced yesterday a plan to inject $250 billion into financial institutions, one day after European governments committed $1.8 trillion to guarantee loans and invest in lenders.
``There will be slow improvement in wholesale funding,'' said Robert Sinche, head of global currency strategy at Bank of America Corp. in New York. ``Over time, the dollar funding issue will sort itself out, which will lead to some retracement of the recent dollar gains. Any doubt on whether we'll have a recession has to fade now.''

"Econ activity weakened in Sept across all 12 Fed Districts" and several Dists said "contacts had become more pessimistic." Consumer spending decreased, infl pressures moderated, labor mkt conditions weakened. Nonfin'l services weakened, mfg moved lower, real estate weakened, credit tightened, cost pressures eased; only farming 'remained favorable.' Book was prepared at Chicago Fed based on info gathered on or before Oct 6.
Prior beige book said "pace of economic activity has been slow in most Districts."

The stock market slides to a fresh session low. The S&P 500 is down more than 5%, but is still up 4.9% this week thanks to the 11.6% surge on Monday.
The recent downturn has been broad-based and there does not appear to be a specific catalyst for the decline.
Meanwhile, buying interest picks up in Treasuries and the dollar (+0.9%).
The Brazilian Bovespa stock market tumbled to a 10% loss, prompting a halt in trading.

The 2-day financial sector led rally ran out of steam as concerns mounting over the global economic downturn. Financials, Oil and gas along with mining sectors are key decliners. CAC-40 is down 264pts (-7.28%), Xetra-DAX is down 398pts (-7.66%) and FTSE-100 is down 339pts (7.72%)

Likelihood is "econ activity will fall short of potential for a time." Details Fed-Tsy steps to date, Fed has the tools; says "Stabilization of the financial mkts is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away." Says econ trajectory depends on mkts returning to more normal functioning. Worries about recently elevated inflation but says it will fall due to falling import prices.

Ian Morris of HSBC says the data suggests that "Q3 consumption is on track for -3% and Q4 about zero." In addition, taken with the just eleased New York Empire index (-24.62 in Oct vs -7.41 in Sept and "partially a result of inventory collapse"), the data hint at "both a decline in final demand (via consumption) and inventories) (with for a time looked like might boost Q3 GDP), suggesting Q3 GDP will be negative," Morris says.

The S&P 500 falls to a loss of more than 4%. Weakness is broad-based.
Within the S&P 500, only 25 stocks are in positive territory. By percent gain, the best-performing component is Hudson City Bancorp (HCBK 17.25, +1.18), +7.6%. The savings and loans firm reported better-than-expected quarterly earnings.
By percent loss, the worst performing component is Jones Apparel Group (JNY 10.04, -3.48), -25.7%. The retailer, which owns brands such as Nine West, cut its full year earnings outlook well below the consensus estimate.

Steve Ricchiuto - "The net read from this mornings economic data is consistent with an outright ontraction but with inflation lagging well behind the downturn in the economy, in part due to seasonal factor distortions."

The major indices trade near recently session lows. Energy stocks (-9.2%) are taking a beating due to economic concerns and lower commodity prices.
Crude oil futures are down 4.0% to $75.50 per barrel, gasoline futures are down 4.5% to $1.79 per gallon and natural gas prices are down 2.9%.

"will offset some of the weakness in domestic final demand" and estimates that real GDP fell 0.5% in Q3. "However, as demand continues to slow and firms rein in inventories, the fourth quarter is shaping up to be very weak."

Stocks extend their opening declines. All ten sectors are posting a loss. Energy (-6.7%) is down the most, while the defensive-oriented consumer staples sector (-1.3%) is outperforming on a relative basis.
Quarterly earnings results were mostly better than expected, although some companies gave cautious outlooks.
Abbott Labs (ABT 54.55, -0.23), Coca-Cola (KO 46.37, +2.64), Intel (INTC 16.08, +0.15), CSX (CSX 44.00, -4.14) and State Street (STT 51.64, -4.92) all posted quarterly earnings growth that topped expectations.
Charles Schwab (SCHW 20.64, -0.33), JPMorgan Chase (JPM 41.22, +0.51), Marshall & IIsley (MI 18.04, -0.96) and Wells Fargo (WFC 33.60, +0.08) topped Wall Street's forecast, but posted year-over-year declines in earnings.
Genentech (DNA 80.66, +1.54) reported a year-over-year increase in earnings per share, but fell short of estimates. Delta Airlines (DAL 7.62, +0.27) swung to a loss, citing high fuel costs.
Crude oil prices are down 3.9% to $75.61 per barrel. The government's weekly energy report is delayed until Thursday due to Columbus Day last Monday. In addition, it will be released at 15:00 GMT instead of the usual release time of 14:35 GMT.

HFE economist Ian Shepherdson says Sept PPI "is a bit disappointing," but the October index will drop sharply when it captures lower energy. He says "pressure on the core is still upwards, thanks to the lagged effect of the rise in commodity prices."

Stock futures fall to fresh session lows and then extend their losses (S&P futures -25.60, Nasdaq futures -29.80) as retail sales and an inflation readings hits the wires. September retail sales fell 1.2% month-over-month (consensus -0.7%), marking the third consecutive decline as consumers curtail spending in the face of economic headwinds. Excluding autos, retail sales fell 0.6% (consensus -0.2%). The September Producer Price Index fell 0.4% month-over-month (consensus -0.4%), benefiting from easing commodity prices. Excluding food and energy, PPI rose 0.4% month-over-month (consensus +0.2%). Compared to last year, PPI is up 8.7% (consensus +8.6%) and PPI excluding food and energy is up 4.0% (consensus +3.8%). Crude Prices are down 4.4% to $75.17 per barrel, with prices hitting their lowest level since August 2007. Dollar Libor -- the rate which banks charge each other for short-term dollar loans -- fell modestly across all terms for the second straight day, indicating that credit markets are slowly improving.
In earnings news, Coca-Cola (KO), CSX (CSX), Abbott Labs (ABT), Intel (INTC) and State Street (STT) all reported better-than-expected earnings growth. JPMorgan Chase (JPM) reported a loss of $0.06 per share before extraordinary gains, and earnings of $0.11 per share including items. Wells Fargo (WFC) posted earnings of $0.49 per share, which topped expectations by $0.08.

Retail sales excluding auto (September) -0,6%
Retail sales (September) -1,2% -0,6%
PPI excluding food and energy (September) 0,4%
PPI (September) YoY 4,0%
PPI (September) -0,4%
NY Fed Empire State manufacturing index (October) -26,62 -10,5 -7,4

Crude oil remains under pressure, amid continued fears of an impending global recession. WTI Nymex crude oil briefly hit $74.97 low, down $3.66 on session, before staging moderate bounce to trade at $75.20.

The dollar pared losses against the yen and reversed its advance versus the euro.
The dollar traded at 101.38 yen by 11:53 a.m. in London, after falling to as low as 100.95 yen. Against the euro, it fell to $1.3670, from $1.3619 yesterday. U.S. retail sales fell 0.7 percent in September following a 0.3 percent drop the prior month, according to the median estimate of economists surveyed by Bloomberg News. The Commerce Department releases the data at 8:30 a.m. in Washington. Figures on Oct. 17 may show housing starts fell to a 17-year low.
Britain's pound rose for a third day against the dollar and traded near the highest level in a week versus the euro.
The government's plan to invest 37 billion pounds ($64 billion) to rescue Royal Bank of Scotland Group Plc, HBOS Plc and Lloyds TSB Group Plc helped drive the pound yesterday to its biggest two-day gain since 2005 versus the dollar.
The euro may drop 13 percent versus the yen as global credit markets will remain depressed even after U.S. and European officials made as much as $3 trillion available to unclog lending, Citigroup Global Markets Inc. said.
The euro may fall as low as 120 yen by the end of 2008 as investors favor the relative safety of the Japanese currency, reinforcing technical charts that signal the euro is vulnerable, said Tom Fitzpatrick, global currency head of strategy at Citigroup Global Markets in New York. The euro traded at 138.89 yen at 7.58 a.m. in Tokyo, from 139.04 yen yesterday.
Rising borrowing costs are causing a reduction in carry trades, where investors get funds in nations such as Japan that have low borrowing costs and buy assets where returns are higher. The risk is that currency moves erase profits.

EUR/USD the pair has become stronger but could not overcome resistance on $1,3680 then down in area $1,3630.
GBP/USD the rate has shown session high not far from a mark $1,7600 then it has continued to be consolidated in the field of $1,7550.
USD/JPY the pair continues to test support in the field of Y101,10 (38,2% FIBO growth Y97,80-Y103,10).

At 1230GMT with the NY Fed Empire State Survey for October, Retail & Food Sales and PPI for September. The Empire State Index is expected to fall to a reading of -10.0 in October after tumbling to -7.41 in the September.
Retail sales are expected to fell 0.7% in September, as industry vehicle sales slowed in the month. Sales excluding vehicles is expected to fall 0.3% on another soft reading for gasoline.
PPI is expected to fall 0.5% in September after the 0.9% drop in August. Energy prices fell further in the month, while core PPI is expected to rise 0.2%.
At 1400GMT is expected to show business inventories rise 0.5% in August. Factory inventories were already reported up 0.6%, while wholesale inventories were already reported up 0.8%.

The dollar pared losses against the yen and reversed its advance versus the euro.
The dollar traded at 101.38 yen by 11:53 a.m. in London, after falling to as low as 100.95 yen. Against the euro, it fell to $1.3670, from $1.3619 yesterday. U.S. retail sales fell 0.7 percent in September following a 0.3 percent drop the prior month, according to the median estimate of economists surveyed by Bloomberg News. The Commerce Department releases the data at 8:30 a.m. in Washington. Figures on Oct. 17 may show housing starts fell to a 17-year low.
``Concerns over a U.S. recession may now intensify, as those over a financial crisis have abated for the time being,'' said Masafumi Yamamoto, head of foreign-exchange strategy for Japan at Royal Bank of Scotland in Tokyo and a former Bank of Japan currency trader. ``These worries may lead to dollar selling, yen buying.''
Britain's pound rose for a third day against the dollar and traded near the highest level in a week versus the euro.
The government's plan to invest 37 billion pounds ($64 billion) to rescue Royal Bank of Scotland Group Plc, HBOS Plc and Lloyds TSB Group Plc helped drive the pound yesterday to its biggest two-day gain since 2005 versus the dollar.
The euro may drop 13 percent versus the yen as global credit markets will remain depressed even after U.S. and European officials made as much as $3 trillion available to unclog lending, Citigroup Global Markets Inc. said.
The euro may fall as low as 120 yen by the end of 2008 as investors favor the relative safety of the Japanese currency, reinforcing technical charts that signal the euro is vulnerable, said Tom Fitzpatrick, global currency head of strategy at Citigroup Global Markets in New York. The euro traded at 138.89 yen at 7.58 a.m. in Tokyo, from 139.04 yen yesterday.
Rising borrowing costs are causing a reduction in carry trades, where investors get funds in nations such as Japan that have low borrowing costs and buy assets where returns are higher. The risk is that currency moves erase profits.

Resistance 3: Y103.50
Resistance 2: Y103.10
Resistance 1: Y102.15
Current price: Y101.41
Support 1: Y101.10
Support 2: Y100.45
Support 3: Y99.90
Comments: The pair renewed a session low, but was not able to overcome support on Y101,10 (38,2 % FIBO of growth Y97,80-Y103,10). Below loss of a rate can will increase up to Y100,45 (50,0 %) and further to Y99,90 (61,8 %). The nearest resistance is Y102,15 (session high). Further is located level Y103,10 (area of a yesterday's high). Above there is a probability of return to Y103,50 (area of July 16 and Sep 16 lows).

Resistance 3: Chf1.1730
Resistance 2: Chf1.1500
Resistance 1: Chf1.1440
Current price: Chf1.1352
Support 1: Chf1.1305
Support 2: Chf1.1185
Support 3: Chf1.1090
Comments: The pair continues to be consolidated. Support is located on Chf1,1305 (23,6% FIBO of growth Chf1,0680-Chf1,1500). Overcoming of the given mark will open road to Chf1,1185 (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 Monday's hich 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: $1.7501
Support 1: $1.7390
Support 2: $1.7260
Support 3: $1.6790
Comments: The rate has slightly become stronger, but as a whole the tech has remained former. The nearest resistance is located in the field of Oct 7,8 and 14 highs on $1,7630/55. 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: $1.3680
Current price: $1.3604
Support 1: $1.3630
Support 2: $1.3450
Support 3: $1.3255
Comments: Tech on euro hasn't changed. Intermediate resistance is presented by area $1,3680 (Monday's high). Further follows $1,3770/80 (area of Oct 9 and 14 highs) which overcoming will open road to Oct 3 high on $1,3900/10. Support is marked in the field of a session low on $1,3530, further is possible falling to $1,3450 (61,8 % FIBO of growth $1,3255-$ 1,3770) and then testing $1,3255 (Friday's low).

Harmonized CPI ex EFAT (September) YoY 1.9%
Harmonized CPI (September) final YoY 3.6%
Harmonized CPI (September) final 0.2%

EUR/USD $1.3600, $1.3650, $1.3800
USD/JPY Y100.80, Y100.75, Y100.35, Y100.00, Y103.00, Y98.40

GBP/USD
offers $1.7570/80, $1.7535/50, $1.7510, $1.7495/500, $1.7480/85, $1.7465/70
Bids $1.7400, $1.7385/80, $1.7350

EUR/JPY
Offers Y138.75/80
Bids Y136.10/00

USD/JPY
Offers Y103.10/25, Y102.95/00, Y101.90/00
Bids Y100.40/30, Y99.96

ILO Jobless rate (3 months to August) 5,7%
Average earnings (3 months to August) Y/Y 3,4%
Claimant count rate (September) 2,9%
Claimant count (September) +31,8%

The yen rose for the first day in five against the dollar on speculation the U.S. Treasury's $250 billion investment in financial institutions won't prevent a recession in the world's biggest economy.
Japan's currency also gained versus the euro as U.S. and Asian stocks fell, damping investors' confidence in higher- yielding assets. The dollar traded near a one-week low against the euro before data that economists predict will show U.S. retail sales declined at a faster pace as job losses and a housing slump curb spending.
The yen snapped two days of losses versus the euro as the MSCI Asia-Pacific Index of regional shares slipped 0.9 percent after the Standard & Poor's 500 Index lost 0.5 percent yesterday. The yen climbed 8 percent versus the euro this month as mounting credit-market losses encouraged investors to shed higher- yielding assets funded by low-cost loans in Japan.
The dollar yesterday reached a one-week high of 103.07 yen, before retreating on concern U.S. government reports will show that the economic slowdown is deepening.
U.S. retail sales fell 0.7 percent in September following a 0.3 percent decline the prior month, according to the median estimate of economists. The Commerce Department will release the data at 12:30 GMT in Washington. Figures on Oct. 17 may show housing starts fell to a 17-year low.
The London interbank offered rate, or Libor, which banks charge each other for three-month dollar loans, remained 314 basis points above the Federal Reserve's target rate of 1.5 percent yesterday. The dollar Libor-OIS spread, a gauge of demand for cash, narrowed 13 basis points to 341 basis points. It was at 105 basis points on Sept. 15 and 24 basis points on Jan. 24.
The Bank of Japan said yesterday it will offer lenders an unlimited amount of dollars, one day after the Fed said the European Central Bank, Bank of England and Swiss National Bank would offer European banks as many dollars as they want at fixed interest rates against ``appropriate collateral.''

EUR/USD having established session low on $1,3535, the pair has raised above a mark $1,3600.
GBP/USD has slightly receded from the reached session low in the field of $1,7390 in area $1,7450.
USD/JPY undertakes attempts to overcome area of a session low on Y101,10.

UK labour market data is due at 0830GMT with the claimant count expected to rise 36k to lift the unemployment rate to 2.9%. Averageearnings are seen coming in at 3.5% 3m y/y, 3.7% ex-bonus. The claimant count unemployment jumped by 32,500 on the month in August.
European data for Wednesday: Eurozone September final HICP is due at 0900GMT and is
expected to Come in at 0.1% m/m, 3.6% y/y.
US data continues at 1230GMT with the NY Fed Empire State Survey for October, Retail & Food Sales and PPI for September. The Empire State Index is expected to fall to a reading of
-10.0 in October after tumbling to -7.41 in the September.
Retail sales are expected to fell 0.7% in September, as industry vehicle sales slowed in the
month. Sales excluding vehicles is expected to fall 0.3% on another soft reading for gasoline.
PPI is expected to fall 0.5% in September after the 0.9% drop in August. Energy prices fell further in the month, while core PPI is expected to rise 0.2%.
At 1400GMT is expected to show business inventories rise 0.5% in August. Factory inventories were already reported up 0.6%, while wholesale inventories were already reported up 0.8%.

Japan's benchmark stock indices ended mixed, as a late rally sent shares higher across the board from mid-afternoon lows. The Nikkei 225 gained 99.9 points, or 1.06%, to stand at 9547.47. The broader-based TOPIX was down by just 0.79 points at 955.51, having been as low as 927.97 in mid-afternoon.

Japanese stocks rallied, driving the Nikkei 225 Stock Average to its biggest gain on record, as U.S. and European government plans to buy bank stakes boosted confidence that global financial markets will avoid collapse.
The Nikkei climbed 14.2 percent, rebounding from the worst week in its 59-year history. Sumitomo Mitsui Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. jumped more than 14 percent as people briefed on the matter said the U.S. will buy stakes in nine banks. Stocks also rallied after Japan's government said it may suspend the sale of state-held shares to boost stocks. Markets were shut for a holiday yesterday when global equities soared.
The Nikkei jumped 1,171.14 to close at 9,447.57 in Tokyo, with 202 of its constituents climbing at least 10 percent. The broader Topix index rose 115.44, or 14 percent, to 956.30, the steepest advance since its inception in 1969.
The Nikkei tumbled 24 percent last week and the Topix fell 20 percent, the most on record, as the deepening credit crisis threatened to topple more financial companies.
Sony Corp. led gains among companies reliant on overseas sales as the yen weakened for a fourth day against the dollar.
Mitsubishi UFJ, the nation's largest listed bank, rose 14 percent to 810 yen. The company secured an additional $300 million in annual dividends for its $9 billion investment in Morgan Stanley after the U.S. securities firm's shares dropped.
Sony, which gets a quarter of its sales from the U.S., surged 17 percent to 2,785 yen. A 1 yen change against the dollar alters Sony's annual operating profit by 4 billion yen ($39 million), the company said in May.

European stocks climbed, sending the Dow Jones Stoxx 600 Index to its biggest two-day gain on record, as the U.S. planned to inject $250 billion in banks and urged the lenders to use the funds to spur economic growth.
Deutsche Bank AG, Germany's biggest bank, and Barclays Plc, the U.K.'s second-biggest bank, rallied more than 10 percent. Societe Generale SA rose 8.2 percent after posting a profit, saying it doesn't need more capital.
National benchmark indexes advanced in all 18 western European markets except Belgium, Iceland and the Netherlands. The U.K.'s FTSE 100 climbed 3.2 percent as BP Plc and Royal Dutch Shell Plc gained. France's CAC 40 jumped 2.8 percent, led by Total SA. Germany's DAX rallied 2.7 percent.
Fortis sank more than 70 percent, dragging Belgium's BEL20 and the Netherland's AEX lower.
Iceland's benchmark stock index plunged 77 percent in the first day of trading after a three-day suspension following the collapse of the country's banking industry.
Money-market rates fell in London with the cost of borrowing in dollars for three months dropping the most since March. The London interbank offered rate, or Libor, that banks charge each other for three-month dollar loans slid 12 basis points to 4.64 percent, according to the British Bankers' Association. It was at 4.82 percent on Oct. 10, the highest level since December.
Deutsche Bank rallied 11 percent to 38.75 euros, while Barclays gained 14 percent to 246 pence. UBS AG, the European lender with the biggest losses from the credit crisis, added 12 percent to 21.4 francs. Societe Generale surged 8.2 percent to 53 euros. France's second-largest bank by market value said it will report ``positive'' net income for the third quarter. Leaving aside one- time items, profit stood at about 1 billion euros, the bank said.

U.S. stocks gained for a second day as the government outlined plans to buy $250 billion in equity stakes in the nation's banks to shore up confidence.
Morgan Stanley, Citigroup Inc. and Merrill Lynch & Co. added more than 17 percent as Treasury Secretary Henry Paulson urged financial firms to ``deploy'' the new capital to unfreeze credit markets. A worsening outlook for earnings at Microsoft Corp., Intel Corp. and PepsiCo Inc. sent computer and consumer shares lower, paring the market's advance.
Morgan Stanley jumped 21 percent to $21.83. Citigroup added 18 percent to $18.51, Merrill Lynch gained 18 percent to $20.72. Goldman Sachs Group Inc. climbed 13 percent to $125. Regional banks KeyCorp, National City Corp. and Huntington Bancshares Inc. each rallied more than 30 percent.
Paulson urged banks receiving the capital to use it to spur economic growth and not hoard it, while not identifying any of the lenders targeted. President George W. Bush said at the White House that the government's intention is to preserve and ``not take over'' the free market.
Financial stocks made up 19 of the 20 biggest gains in the S&P 500, each with rallies above 15 percent. The S&P 500 measure of banks, insurers and asset managers climbed 7.2 percent.

Resistance 3: Y103.50
Resistance 2: Y103.10
Resistance 1: Y102.15
Current price: Y101.48
Support 1: Y101.10
Support 2: Y100.45
Support 3: Y99.90
Comments: The yen rose for the first day in five against the dollar on speculation the U.S. Treasury's $250 billion investment in financial institutions won't prevent a recession in the world's biggest economy. The nearest support is located on Y101,10 (session low, and also a level of 38,2 % FIBO of growth Y97,80-Y103,10). Below loss of a rate can will increase up to Y100,45 (50,0 %) and further to Y99,90 (61,8 %). The nearest resistance is Y102,15 (session high). Further is located level Y103,10 (area of a yesterday's high). Above there is a probability of return to Y103,50 (area of July 16 and Sep 16 lows).

Resistance 3: Chf1.1730
Resistance 2: Chf1.1500
Resistance 1: Chf1.1440
Current price: Chf1.1368
Support 1: Chf1.1305
Support 2: Chf1.1185
Support 3: Chf1.1090
Comments: The pair continues to be consolidated. Support is located on Chf1,1305 (23,6% FIBO of growth Chf1,0680-Chf1,1500). Overcoming of the given mark will open road to Chf1,1185 (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 Monday's hich 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: $1.7480
Support 1: $1.7390
Support 2: $1.7260
Support 3: $1.6790
Comments: The dollar remains under pressure. The Commerce Department's report on retail sales is due at 12:30 GMT in Washington. Sales excluding autos probably fell 0.2 percent after a 0.7 percent decline the prior month, economists forecast. The nearest resistance is located in the field of Oct 7,8 and 14 highs on $1,7630/55. 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: $1.3680
Current price: $1.3604
Support 1: $1.3630
Support 2: $1.3450
Support 3: $1.3255
Comments: The dollar remains under pressure before the publication of data on retails. Sales at U.S. retailers probably decreased in September as mounting job losses, plunging home prices and the deepening credit crisis rattled consumers, economists said before reports today. Purchases fell 0.7 percent, the most in more than a year, after dropping 0.3 percent in August, according to the median of estimates. Intermediate resistance is presented by area $1,3680 (Monday's high). Further follows $1,3770/80 (area of Oct 9 and 14 highs) which overcoming will open road to Oct 3 high on $1,3900/10. Support is marked in the field of a session low on $1,3530, further is possible falling to $1,3450 (61,8 % FIBO of growth $1,3255-$ 1,3770) and then testing $1,3255 (Friday's low).

HICP (September) final YoY 3.0%
CPI (September) final YoY 2.9%
CPI (September) final -0.1%

EUR/USD 1.3768 1.3588 1.3617
USD/JPY 103.07 101.48 102.12
GBP/USD 1.7631 1.7391 1.7410
USD/CHF 1.1382 1.1271 1.1363

EUR/JPY 141.68 138.47 139.07
EUR/GBP 0.7845 0.7759 0.7819
GBP/JPY 181.36 176.87 177.83
GBP/CHF 1.9935 1.9722 1.9783

Change % Change Last
Topix +115.44 +14.00% 956.30
Nikkei +1,171.14 +14.15% 9,447.57
FTSE +137.31 +3.23% 4,394.21
DAX +136.74 +2.70% 5,199.19
CAC +97.02 +2.75% 3,628.52
Dow -76.62 -0.82% 9,310.99
NASDAQ -65.24 -3.54% 1,779.01
S&P -5.34 -0.53% 998.01
10yr Note +1.6200 +0.420% 4.023%
NYMEX Crude Oil -2.56 -3.15% 78.63
Gold -3.00 -0.36% 839.50

04:30 Japan Industrial output (August) final, YoY -6.9%`
04:30 Japan Industrial output (August) final -3.5%
06:00 Germany HICP (September) final YoY 3.0% 3.3%
06:00 Germany CPI (September) final YoY 2.9% 3.1%
06:00 Germany CPI (September) final -0.1% -0.3%
08:30 UK ILO Jobless rate (3 months to August) 5,5%
08:30 UK Average earnings (3 months to August) Y/Y 3,5%
08:30 UK Claimant count rate (September) 2,8%
08:30 UK Claimant count (September) +32,5
09:00 E15 Harmonized CPI ex EFAT (September) YoY 1.9%
09:00 E15 Harmonized CPI (September) final YoY 3.6% 3.8%
09:00 E15 Harmonized CPI (September) final 0.1% -0.1%
12:30 USA Retail sales excluding auto (September) -0,3% -0,7%
12:30 USA Retail sales (September) -0,6% -0,3%
12:30 USA PPI excluding food and energy (September) YoY 3,6%
12:30 USA PPI excluding food and energy (September) 0,2% 0,2%
12:30 USA PPI (September) YoY 9,6%
12:30 USA PPI (September) -0,4% -0,9%
12:30 USA NY Fed Empire State manufacturing index (October) -10,5 -7,4
14:00 USA Business inventories (August) 0,7% 1,1%
14:35 USA EIA Crude Oil Stocks change (Okt 11) 302.6
18:00 USA Fed Beige book