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

announcement that cypriot authorities are going to "confiscate" 10% of all bank deposits over e100,000 and 6.75% of deposits < e100,000 may well upset markets on monday especially in Spain and Portugal.

Well the move does kind of cross a financial rubicon, but I suspect the market may well ultimately like it as it certainly goes a long way to solving a problem which didn't look like going away any time soon. It's also a non-discretionary tax which doesn't affect consumer choices.

Somehow, I doubt the Russian money launderers who are alleged to have deposited all their washed money into Cypriot banks will be too chuffed about it though. :o)

It certainly would have been better to be a borrower in Cyprus rather than a depositor, we hope George doesn't find out this is a great way to pay off his deficit! It might be a good idea to clear more space under the bed.

Or fully invest all of it in equities. Saver rates are so poor at the moment in the UK that, apart from Cash ISA's, any other form of investment seems a good idea. Mr C is into fine wines, though he seems to be drinking more than he lays up, but another way to get a better return if you know what you are doing!

MrC has the problem of too much fine wine now getting too mature ..... i know i could sell a much of it and get good money, but i'ld hate to do that as among other things, i know i could not afford to replace with such quality :-(

btw, i think buying fine wine as an investment is not only risky, but also likely to be a major con trick .....for example

i prob paid £5/600 c/s for 1985 margaux en primeur ..... that would have been bought prob in 1987, so i've held for 15 years ..... i can now get say £3250 c/s for it ...... that's not too terrible on the face of it, but then i haven't paid any "investment adviser at either/both end of the transaction) nor storage (i have it at home in a cellar) and i'ld sell it through farr vintners who only charge 10% commission .... already £3250 has become £2900

Cynic - I make that 26 years.

Apparently Osborrne will compensate troops and government workers.

China's new premier pledges reform, sees risks

BEIJING | Sun Mar 17, 2013 6:37am GMT

(Reuters) - Chinese Premier Li Keqiang said on Sunday ensuring economic growth was the top priority for his government, pledging to fight graft, tackle vested interests and calling for an end to a cyber-hacking row with the United States.

Li's first news conference as premier, at the close of the annual meeting of China's rubber-stamp parliament that confirmed his appointment, covered topics that have been the principal focus of recent government rhetoric, with a strong emphasis on the necessity of reform to deliver long-term economic stability.

hmmmm!

Exiting swaps trades is difficult under rules.......
A migration to swaps-execution facilities, as mandated by the Dodd-Frank Act, has made ending trades in less actively traded swaps more difficult, as traders are no longer able to negotiate directly with dealers, according to AllianceBernstein. "A lot of real-money, buy-side trading practices have been ignored in this process," Senior Vice President James Wallin said.

skinny do you believe in flying pigs or white elephants?

halifax - from what point of view? Philosophically, either or/neither, or for eating :-)

Japan PM Abe's Pacific trade pact gambit pays off, for now

TOKYO | Mon Mar 18, 2013 7:16am GMT

(Reuters) - Japan Prime Minister Shinzo Abe's first politically risky step of declaring the country's intent to join talks on a U.S.-led Pacific Rim free trade pact appears to be paying off as his record high ratings edge even higher.

Public opinion surveys showed on Monday that Abe's support ratings had risen since last month to reach the highest levels since he took office in December and a majority backed Friday's announcement that Japan wanted to join Trans-Pacific Partnership (TPP) membership talks.

Corralito

Looks like a 2-3% correction pretty much across all stocks this morning. Pre-budget profit taking maybe?

er..

The euro gapped heavily down overnight across the board, Harry.

The market didn't think much of Cyprus' plans and they probably thought even less of the indecision now surrounding the bail-in. Technically, the euro had started a down-cycle on the hourly charts anyway, so the move just got extended with the news.

If it's any consolation, there's an age-old saying - 'The Asians always get it wrong'. Opening gaps like this very often get filled by the end of the week.

Well it was when I posted! Now maybe 5-7%! :o(

As for the Corralito, Argentina were operating in isolation, whereas Cyprus are part of a group with a common currency, so not sure that it's directly comparable.

They might not be directly comparable, Harry (there were differing underlying reasons for Corralito as well), but the market is already talking about 'Corralito coming to Europe' this morning.

There were two important side-effects that happened as a result of Corralito that can't be ignored. Firstly, bank runs back in 2001/2002 spread as far afield as Spain and Italy. Secondly, 12 years down the line, your average Argentinian still prefers The Bank of the Mattress.

The banking system is already in a parlous position. There is little liquidity and it needs consumer trust right now.

Footsie settling down.. For now.

Waiting on the vote..

Cyprus parliament to consider deposit tax; European stocks fall

NICOSIA | Mon Mar 18, 2013 9:31am GMT

(Reuters) - Cyprus's parliament votes on Monday on a plan to seize money from bank deposits as part of an EU bailout, a move that has sent a shiver across the bloc, caused the euro to tumble and stock markets to dive.

The announcement at the weekend that tiny Cyprus would impose a tax on bank accounts as part of a 10 billion euro (8.6 billion pounds) bailout broke with previous European practice that depositors' savings were sacrosanct.

EUR Italian Trade Balance -1.62B consensus 2.11B previous 2.11B

EUR Trade Balance 9.0B consensus 10.4B previous 12.0B