rather than pick out individual stocks to trade, it can often be worthwhile to trade the indices themselves, especially in times of high volatility.

for those so inclined, i attach below charts for FTSE and FTSE 250, though one might equally be tempted to trade Dow or S&P, which is significantly broader in its coverage, or even NASDAQ

for ease of reading, i have attached 1 year and 3 month charts in each instance

MARKET TALK: India Indust Production a Short-Term Plus for INR -BBH

9:47 EST - With India's stronger-than-expected October industrial production, Brown Brothers Harriman's Ilan Solot says it's a good day for his short-term long INR view. But a persistently high CPI threatens the rupee's longer-term outlook. That makes November's CPI due Friday critical to whether the Reserve Bank of India will cut rates at its Dec 18 meeting or early next year -- a temporary negative for the currency, but something longer-term investors would likely welcome as a measure to boost India's economy. If USD/INR breaks below 54, he says it'll be testing 53.60, but a break above 50 would signal a more constructive dollar outlook. USD/INR firms slightly to 54.31, from 54.32 late Tuesday, according to FactSet.

MARKET TALK: Fed Expected to Replace Twist, but If Not, USD to Surge

10:22 EST - If, by some major surprise, the Fed announces Twist is expiring at the end of the month with no new replacement, Miller Tabak's Andrew Wilkinson says the dollar would likely surge higher in a "knee-jerk" reaction. Nearly everyone is expecting the Fed to replace Operation Twist, and Fed officials have hinted at it in recent speeches, Wilkinson says. That sets up the market, which has priced in such expectations, to do a whole lot of nothing following the FOMC's statement, he says. The "Fed is going to keep the pedal to the floor," Wilkinson says. Ahead of decision and Bernanke remarks, EUR/USD up about 0.3% on day at 1.3047, according to EBS via CQG.

USD 10-y Bond Auction 1.65|3.0 previous 1.68|2.6

MARKET TALK: Layers and Layers of Support in Treasurys

12:21 EST - Solid domestic buying at 10-year sale reflects just how comfortable investors are in their belief that the Fed will deliver on more Treasury buying. Risk is that the central bank disappoints, either with no replacement to Twist or a program smaller than $40B a month. But even then, traders cite layers and layers of support in the Treasurys market when prices start to decline. The rationale is that if the Fed doesn't buy more bonds, stocks will suffer, sending a bid back into Treasurys anyway. Benchmark 10-year notes now flat on the day to yield 1.651%.

Dow off to the races.

Fed Expands Asset Buying, Links Rates to Joblessness, Prices

The Federal Reserve said it will buy $45 billion a month of Treasury securities starting in January, expanding its asset-purchase program, and it linked the outlook for its main interest rate to unemployment and inflation.

“The committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor-market conditions,” the Federal Open Market Committee said today at the conclusion of a two-day meeting in Washington.

The Fed said interest rates will stay low “at least as long” as the unemployment rate remains above 6.5 percent and if inflation “between one and two years ahead” is projected to be no more than 2.5 percent. The committee “views these thresholds as consistent with its earlier date-based guidance.”

Chairman Ben S. Bernanke is using his unlimited authority to buy Treasuries in an unprecedented effort to stoke growth and reduce 7.7 percent unemployment. The Fed acted in its last regular meeting of the year as lawmakers and the Obama administration continue talks to avert more than $600 billion of automatic spending cuts and tax increases that threaten to throw the country into a recession.

Stocks and Treasury yields rose after the statement. The Standard & Poor’s 500 Index climbed 0.3 percent to 1,431.93 at 12:35 p.m. in New York. The yield on the 10-year Treasury note was 1.69 percent, compared with 1.66 percent late yesterday.

With Germany onside, EU nears banking union deal

BRUSSELS | Wed Dec 12, 2012 5:44pm GMT

(Reuters) - Germany signalled on Wednesday it was ready to back plans to give the European Central Bank new powers to supervise banks across the bloc, raising the prospect of a breakthrough on the European Union's most ambitious financial reform.

Last week France and Germany had clashed openly over parts of the plan, but with little time left for the EU to meet a commitment to complete the framework for a common bank supervisor by the end of the year, both countries redoubled efforts to settle their differences.

actually, little change from cash dow at london open this morning .... QE was already priced in

I've had a small short @13,310 - FTSE still above 5,950.

when i took my last bit of profit just now, i accidentally shorted at 13303 at the same time, and decided to let it run

Dow back on its trend line and looking to breach it.

Closed +73.

breached north or south? ...... my accidental short is doing nicely for now

South.

there's a shame (for now) :-) ...... i doubt i'll maintain that short over the w/e, even though dow has probably overstretched itself for now ..... i suppose the rising 13161 (per your chart) is a reasonable downwards target for now

Eurozone banking union agreed by finance ministers

European finance ministers have reached agreement on a eurozone banking union ahead of an EU summit in Brussels.

The deal follows months of strained negotiations between member states and it will now be put before European leaders later on Thursday.

Eurozone crisis live: EU clinches breakthrough deal on banking union

Thursday 13 December 2012 12.12 GMT

CAD NHPI m/m 0.2% consensus 0.1% previous 0.2%

CAD Capacity Utilization Rate 80.9% consensus 80.6% previous 81.0%

USD Core Retail Sales m/m 0% consensus 0.0% previous 0.0%

USD PPI m/m -0.8% consensus -0.5% previous -0.2%

USD Retail Sales m/m 0.3% consensus 0.5% previous -0.3%

USD Unemployment Claims 343K consensus 368K previous 370K

USD Core PPI m/m 0.1% consensus 0.2% previous -0.2%

Thanks for the info Skinny.

I read somewhere that, out of that lot: "Retail sales would give the market direction today"

Well the markets have come off since 1:30.