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§ US equities up to 3% lower, which might have been due to forced selling and con-cerns about the health of major market participants. Asian stocks had a weak opening and were unable to regain the early losses.
§ South Korea intervened on forex markets once again to support the tumbling won, which has been hammered by fears of capital flight from Asia's fourth-biggest economy.
§ Russia's central bank intervened to support the ruble as there had been capital outflows since the conflict with Georgia. Ruble shows very limited gains.
§ Sheila Bair, Federal Deposit Insurance Corp's chairman says that troubled loans keep rising and US banks will need to shore up their reserves to cover potential losses in the next quarters.
§ Lehman Brothers considers a plan to put some $32 billion of its commercial real estate and mortgage assets in a new spin-off.
§ Oil ($107.70) falls as inventories report shows declining demand.
§ Today, German Industrial production (July) and the US August payrolls on the cal-endar.
The dollar extends gains from this morning as still the weak major currencies continue to boost the appearance of the currency. The U.S. today is scheduled to release non-farm payrolls for the month of August coming with expectations showing that the labor market shed 75 thousand employees while the prior reading was -50 thousand. If these projections are correct, then it will deteriorate the dollar in the market.
It is not a pretty site for the European economies as they are at a tip of recession while the minutes for the ECB leaving rates at 4.25% were released yesterday as Jean-Claude Trichet revised down growth further proofing how weak the economy is. The EUR/USD is currently trading at 1.4256 while recording a high of 1.4317 and a low of 1.4220. We see that the support of 1.4280 from this mornings session has been broken, currently becoming the resistance while the next support is at 1.4210.
The deteriorating UK economy is further weighing down the sterling currency as it continues depreciating in the markets, today the nation is fundamental free. The GBP/USD is traded at 1.7639 between the support of 1.7560 and the resistance of 1.7670. The pair recorded a high of 1.7643 and a low of 1.7536.
