Hello traders!

In the US tonight, the Dow Jones Industrial Average fell 238.4 points to 12,589.1.
The S&P 500 shed 26 points to end at 1,390.18, while the Nasdaq Composite
declined 58.95 points to 2,440.51.

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

G.

Morning all. Market reports:

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

Shares in Countrywide Financial fell by more than a quarter yesterday to close at their lowest level since July 1996, as rumours spread across the markets that Americas largest mortgage group was poised to file for bankruptcy.
Countrywide stock slumps as bankruptcy rumour hits US markets

Barclays Capital has ousted Grant Kvalheim, its co-president, making him the latest casualty of the banks foray into risky American sub-prime mortgages. It is understood that Mr Kvalheim, who joined the bank in 2001, will leave this quarter.
Co-president of BarCap is made latest victim of credit crunch

Credit market turmoil will endure all the way until late 2008, but global economic growth will be held aloft by the resilience of countries such as China and India, the World Bank has said. In its authoritative forecast on the emerging economies, the Washington-based institution predicted that the world's poorest countries will outpace the West by more than three times. It said while growth in the developed world will slow to 2.2pc in 2008, developing countries will expand at a rate of 7.1pc.
World Bank sees China behind growth

City anxieties are mounting that the global flood of ultra-cheap Chinese exports may be ending, threatening to stoke inflation and make it harder for the Bank of England to cut interest rates to bolster a vulnerable economy.
Inflationary threat looms as tide of cheap Chinese goods dries up

The first signs that China's stock market bubble may be about to burst emerged yesterday as research from the Chinese Xinhua Finance company and the Milken Institute indicated a sharp decline in the value of shares recently floated on the Chinese exchanges.
Slowdown in new issues fuels fears over China

Its going to be a particularly tough decision for the interest rate setters at the Bank of England this week. With energy bills, rail fares and food prices all rising fast, the ghost of inflation is hovering in the shadows of the octagonal room in Threadneedle Street where the Monetary Policy Committee gathers.
Nine reasons to make a brave, bold cut

Recession is an ever more likely possibility because of a slowdown in the jobs market, according to a report for the Recruitment and Employment Confederation and KPMG.
Growth in the labour market hits two-year low as economic conditions bite

Faltering house prices staged a pre-Christmas fightback, rebounding sharply last month after falling for the previous three months in a row, the latest snapshot of the property market from Halifax suggested yesterday.
House prices stage comeback in end-of-year survey by Halifax

Economists have warned that further house price falls are on the way, despite figures from the Halifax bank showing that property values rose last month.
House prices set to decline despite small December rise

Analysts were cheered by the relatively upbeat festive trading at a mix of stores. James Hall, Angela Monaghan and Felix Lowe report on the select few that hit their targets.
A ray of light to brighten high street gloom

A senior banking industry figure has left his job after making a joke about Muslims which reportedly stunned colleagues and was the subject of complaints. Marc Howells of Barclaycard Europe has left his post.
Head banker leaves job over Muslim gaffe

NIKKEI	AUSTRALIA	SHANGHAI	HANG SENG

Good morning traders!

In Asia today, the Nikkei closed up 70.49 points at 14,599.16, while the Hang Seng
reached the midpoint ahead 59.43 points at 27,172.33.

New York's main oil contract, light sweet crude for delivery in February, was up 36
cents at $96.69 a barrel.

Happy trading!

G.

OUTLOOK Housebuilder trading updates seen hitting sector confidence furtherOUTLOOK Marks & Spencer seen reporting solid ChristmasTokyo shares close firmer on bargain-huntingTFN economic and business calendar

TFN UK calendar and forecasts for today

London shares outlook - lower after NY drop; Persimmon, Marks & Spencer in focus

Thomson Financial UK at a glance share guide

STOCKWATCH Marks & Spencer set to fall as much as 5 pct after 3Q disappointment

Marks & Spencer (MKS) reported like for like sales down 2.2% versus analyst expectations of a 1.1% rise, and trading conditions will remain tough. They would like a 50bp rate cut. Food sales were surprisingly down 1.5%. Cantor are bravely calling it only 2-3p lower but GFT are saying 5% down. Evolution have downgraded MKS.

Persimmon (PSN) reported home completions down 5% and forward sales down 14% but that they are in line with expectations.

Computacenter (CCC) expect to be marginally ahead of consensus.

Among the small caps, 'under possible offer' Eckoh (ECK) have signed a new five year deal with Northern Ireland Electricity. Meldex (MDX) say they will launch seven new products in Q1. Chip designer Arc International (ARK) are headlining a 20% YoY revenue increase but they have delayed contracts and the EBITDA loss will be higher than expected. The only Japanese company listed on AIM, though possibly not for long, Secure Design (SDKK), have announced 'very poor trading' due to retirements in the sales team... they will update again soon with details of their short-term cash facilities and funding options going forward. Corin Group (CRG) are employing an ex-Smith & Nephew man as their CEO, and William Ransom (RNSM) have also got a new CEO after their recent troubles.

In addition to the Evolution MKS downgrade, ITV downgraded to sell from hold with a 75 target by Deutsche Bank. Sage (SGE) have been downgraded to underperform from neutral by Credit Suisse in a sector note - so there are probably recommendations on other stocks out there today. Imperial Energy (IEC) has been added to Merrill Lynch's Europe 1 List with a 2400 target. UBS have also upgraded IEC with a 1900 target. Tullow (TLW) has been upgraded to neutral by UBS, Cairn's (CNE) price target has been upgraded by Credit Suisse.

The FTSE is currently being called down 48 at 6,308 by CMC. Dow futures are currently being called up 75 at 12,664 after yesterday's 238 point loss. Asia has been surprisingly strong though, with the Nikkei, Hang Seng, KOSPI, Shanghai and Singapore all positive.

BROKERWATCH Sage cut to 'underperform', Misys raised in Credit Suisse reviewTokyo shares close firmer on bargain-hunting - UPDATE

FWIW,
For short term traders out there, I think the MKS sell off is hugely overdone, and there may be some good short term money to be made on the bounce.
Knee jerk????

STOCKWATCH Xstrata lower, reverses earlier gains from Anglo American bid rumoursSTOCKWATCH Sainsbury lower amid rumours Tchenguiz could be forced to sell stakeBROKERWATCH Legal & General cut to 'Underperform' from 'Market Perform' by KBWSTOCKWATCH Persimmon down after update; Dresdner Kleinwort cuts to 'reduce'BROKERWATCH S&N upped to 'add' vs 'hold' at Dresdner Kleinwort, tgt 800p vs 760STOCKWATCH BP down on talk guiding estimates down; Merrill cuts FY EPS UPDATECORRECTION BROKERWATCH UK healthcare sector targets raised at Credit SuisseSTOCKWATCH Marks & Spencer plunges 19 pct on Q3 weakness; trio of downgradesUS futures manage a meek advanceUK small caps stay low at midday; Secure Design KK slumps on FY sales warning

BROKERWATCH Marks & Spencer upgraded to 'buy' from 'add' by Dresdner Kleinwort

Midday Market Roundup

Precious Metals Summary - London AM Fixings

London shares - midday features

STOCKWATCH Impresa outperforms on news TV arm in talks to sign hit TV show

Metals - Gold dips on profit taking midafternoon after earlier record high

FOCUS BoE rate setters under unprecedented pressure to lower ratesLondon shares - midafternoon features