Stock markets remain main point of focus

Following the minor euphoria from the Joint activities last week, Stock markets again seem to be the main point of focus on the downside.

With further fears of recession, following poor British unemployment data (5.7%, its highest level in eight years), the Fed's beige book reporting weakened economic activity across all states and the U.S. government reporting retail sales falling 1.2% in September (biggest monthly decline in 3 years) this may have been enough to turn the markets negative.

But to ensure the markets did not stay positive/confident for too long Mr Bernanke stated that a marked slowdown will be seen in spending, investment and jobs. Also that market turmoil is a significant threat to growth.

These recession fears led to risk -averse selling with the US dollar benefiting from the purchase of U.S. assets, with the Dollar heading back down.

Also during New York trading we saw the Skandi currencies hit 2 yearly highs against the dollar overnight and this morning EUR/SEK hitting its highest ever official level over 10.000 to 10.1440 due to the lower risk appetite and low liquidity in periphery currencies

This morning we have seen an announcement that Switzerland's two largest banks (Credit Suisse and UBS) will receive billions of francs of emergency funding from the country's government and other investors to shore them up against the financial crisis.

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