This has sent stocks crashing with the Dow Jones done a record 777 points (-6.98%) and NASDAQ down 199 points (-9.14%). The Fed responded with increasing swap lines between central banks to $620 billion. Crude oil closed at $96.37 a barrel.
After the nationalisation of Bradford and Bingley, the GBP fell to a record 15 year low against the USD closing at 1.8080 after seeing a high of 1.8340. Speculation suggests seeing a rise in the immediate future but then falling to 1.65 in 12-24 months.
The Euro suffered a drop after Fortis was bailed out by Benelux central banks, although it did have a short boost after the US bailout was rejected and large amounts of US repatriation was seen. Overall the EURO traded against the dollar with a high of 1.4635, low of 1.4303 and closed on 1.4400. Inflation in the Eurozone has dropped 0.2% to 3.6% in September compared to 3.8% in August.
With everyone searching for a safe haven, Gold ended the day at $906 an ounce.
Key figures out today are the GFK index which is forecast to drop to -39ldx from -36ldx. The GDP Q2 which is expected to be at a flat 0.0%.
Due out today from the US, the Chicago PMI is seen at 53.5, down from 57.9, with CB consumer confidence due to come in at 54.6 from its previous 56.9.