Hello traders!

In the US tonight, the Dow closed down 172.65 points at 13,167.2, while the
S&P500 was off 22.05 points at 1,445.9 and the Nasdaq Composite slipped
61.28 points to 2,574.46.

See you in the morning with the latest......

G.

Morning all. Market reports:

Telegraph
The Times
The Times (Need to know)
FT
The Guardian
The Independent
This is Money

Britain now faces a 50-50 chance of a recession next year amid the "toxic combination" of a housing market slump and the fallout from the credit crunch, experts have warned.
UK recession forecast put at 50-50

Sterling faces the risk of a "perfect storm" next year as the housing bubble pops, interest rates tumble, and dwindling City revenues following the credit crunch expose the grim state of Britain's overstretched trade accounts.
Sterling's outlook hit by credit crisis

Shoppers have finally hit the high street and are forecast to spend nearly 30pc more in the week to Christmas then they did last year, but retailers fear the rush could prove to be too little too late.
Early sales lead to Christmas shopping rush

Growth in the UK will slow markedly next year and is unlikely to see a recovery until after 2009, the CBI warned today, as the credit crunch and soaring energy prices continue to cloud the outlook for the world economy.
CBI predicts a grim few years ahead for the UK economy

China loosened its controls on overseas investments yesterday by opening the door to its banks to invest in British stocks and mutual funds. Britain becomes only the second destination after Hong Kong in which the banks can invest their clients’ money.
China gives the green light for banks to invest in British funds

Chinese citizens will soon be able to buy shares and mutual funds in London and New York through their local banks after a regulatory reform that marks a further step in the export of Chinese capital into global markets.
Chinese to be allowed to buy UK shares

Europe’s central bank crossed the Rubicon of monetary policy last night as it announced that it would undercut the credit squeeze by lending funds below market interest rates.
ECB to lend below market rates in credit squeeze fight

Wall Street is bracing itself for years of legal wrangles over who should shoulder losses on the complex derivatives at the heart of the credit crisis. A court case pending in New York, involving Deut-sche Bank and UBS, among others, is the first to try to unpick who is owed what, now that American homeowners are defaulting on their mortgages in record numbers.
Millions at stake as credit crisis gets legal

Turbo-charged American exports have at last begun to sweep global markets, leading to a dramatic fall in the US current account deficit over the past year.
Weak dollar restores health to wide range of exporters

NIKKEI	AUSTRALIA	SHANGHAI	HANG SENG

Good morning traders!

In Asia today, the Nikkei closed down 41.93 points at 15,207.86, while the Hang
Seng reached midway up 113.88 points at 26,710.46.

New York's main oil futures contract, light sweet crude for January delivery, was
28 cents higher at $90.91 a barrel after closing down 64 cents at $90.63 in New
York Monday.

Happy trading!

G.

Tokyo shares close off lows on bargain-hunting; Nikkei falls for 5th dayAustralian shares close off lows as bargain hunters emerge - UPDATETFN economic and business calendar

The Tuesday Press Roundup

BROKERWATCH Rentokil cut to 'neutral' vs 'buy' at UBS, target to 125 penceLondon shares outlook - weaker, all eyes on UK CPI inflation figures

Tokyo shares close off lows on bargain-hunting - UPDATE

Drax (DRX) says they are trading in line, but have had to scrap their refinancing plans because of debt market conditions. Ofcom isn't happy about the pay-TV market - who is - this might effect BSkyB (BSY) today as they were the reason for the complaint, although their shares have been pretty resiliant in the past to such accusations.

Among the mid-caps the boot's on the other foot as Sports Direct's (SPD) Mike Ashley sells The Original Shoe Company to his friend at JJB, and he might be considering not blocking Nike's bid for Umbro (UMB). Cookson (CKSN) say they expect their full-year results to be at the upper end of expectations. Former QXL Tradus (TRAD) have agreed to a recommended cash offer at 1800 - a pound per share higher than rumoured in the weekend press. Widely followed ReneSola (SOLA) has released a trading statement with another supply deal.

Rentokil (RTO) has been downgraded to neutral from buy by UBS with a big price target cut from 185 to 125. Cairn (CNE) has been downgraded to hold from buy by SG Securities in an oil sector review which means there are probably other notes out on other mid-cap oil companes.

FTSE is currently being called down 9 at 6268 by CMC. Dow futures are up 58 at 13,225 after the 172 point fall yesterday. Australia's ASX200 managed something of a comeback today after initially going down 160 points, and the Hang Seng is actually positive with a 0.6% rise.

Thomson Financial UK at a glance share guide

UK smallcap opening - Playgolf firms on placing with JV partner Kilmartin

BROKERWATCH Cairn Energy cut to hold by Societe Generale in sector reviewLondon shares open lower, investors await UK CPI inflation figures

UK smallcap opening - Interactive Prospect runs back on UK revenue warning

UK smallcap opening - Kingspan down on earnings growth caution

UK smallcap opening - Slimma slides on swing to FY operating losses

UK smallcap opening - Character rebounds after yesterday's H1 sales warning

Metals - Gold steady as recovery in dollar offset by higher oil prices

Metals - Copper continues below 6,400 usd on slowing demand

Metals - Copper continues below 6,400 usd on slowing demand UPDATE

London shares - mid-morning featuresMetals - Platinum hits record high on expectations of tighter market in 2008

BROKERWATCH Philips, Roche added to Merrill Lynch's preferred healthcare listThomson Financial News at a glance - Today's UK, European broker recommendations

STOCKWATCH Drax sharply down on bearish update; cautious at Dresdner Kleinwort

Paris shares higher midday; US futures point higher, Goldmans profits in focus

US futures heading higher today

WALL STREET OUTLOOK Rebound seen as credit fears ease; Goldman earnings awaited

London shares - midday features

UK small caps edge lower midday; Slimma slumps after a swing to FY losses

Midday Market Roundup

Precious Metals Summary - London AM Fixings

Metals - Gold above 800 usd on weak US housing data; platinum sets record high

London shares - midafternoon features

Metals - Copper edges back above 6,400 usd after dollar weakens

Precious Metals Summary - London PM Fixings

TFN economic and business calendar to Tuesday, Jan 1

End-of-day Market Roundup