Morning all. Market reports:

Telegraph
Telegraph (Bloomberg summary)
The Times
FT
The Guardian
The Independent
This is Money

Sterling has soared to its highest level against the dollar since the early Thatcher era, smashing through resistance to reach $2.0131 as global investors turn ever more bearish on the crumbling US currency.

Sterling marches on to reach 26-year high

While the markets are now pricing in two more rate rises in Britain to 5.75pc, they are betting that the next move by the US Federal Reserve will be a rate cut. America's economy has slowed sharply, with a risk that the property bust will cause a hard landing later in the year.

A dark side to over-stretched, strong sterling

Speculation that borrowing costs will have to be lifted from their current 5.25 per cent to 5.75 or even 6 per cent was stoked by news that two of the nine-strong Bank of England Monetary Policy Committee voted for an immediate rate hike at this month's meeting. The revelation sent the pound, which on Tuesday burst through $2 for the first time in 15 years, soaring to $2.0133 - a level not seen since June 1981.

Sterling hits 26-year high on fresh rate fears

THE POUND could trade as high as $2.10 against the dollar this year, leading currency analysts believe, inflicting lasting pain on British companies with significant exposure to the US currency.

Currency analysts warn pound set to surge as high as $2.10

Momentum investment may be the slothful route to riches, but for many it works. The general propensity to follow the crowd explains much about the markets and their gyrations. Mankind's susceptibility to collective irrationality is never far from the surface, however, and is a constant threat to investors

Any market report should, then, be read with a pinch of salt. Many "experts" quoted spend their days desperately searching for the real reasons why prices are moving. Indeed, some regard access to market reporters as one of their best avenues to the truth. It is not quite clear who is leading whom.

What is most remarkable, however, is that the genuine movers and shakers still themselves scour market commentaries. The funds at their disposal may give them a major advantage, but they dare not allow their edge to be blunted by missing out on a titbit of information.

Circle of insecurity should be jangling investment nerves

The rival platform to European stock exchanges being set up by seven investment banks moved closer with the appointment of a clearing and settlement partner. Project Turquoise, led by Goldman Sachs and Deutsche Bank among others, has appointed EuroCCP to handle its clearing and settlement.

Banks' European platform finds partner for clearing

NIKKEI	AUSTRALIA	SHANGHAI	HANG SENG

Good morning traders!

In Asia today, the Hang Seng ended the morning down 404.71 points at 20,372.38,
while the Nikkei reached the midpoint down 254.92 points at 17,412.41.

New York's main oil futures contract, light sweet crude for delivery in May, was
down 19 cents at $62.94 a barrel from $63.13 usd in US trading overnight.

Happy trading!

G.

OUTLOOK Reckitt Benckiser Q1 boosted by product launches, increased A&P spendOUTLOOK Prudential Q1 sales seen 4 pct lowerOUTLOOK Rio Tinto Q1 output to be affected by adverse weather at Australian opsAsian markets summaryAsian economic and corporate news summary

ABF reiterated overweight - target 1020 from 900 - Morgan Stanley
BGY equal-weight - target 580 from 480 - Lehman Brothers
BWY downgraded to hold from buy - ABN Amro
MEC target 99 from 82 - ABN Amro
SIG reiterated underweight - target 110 from 122 - Lehman Brothers
UBM target 950 from 800 - JP Morgan

BP. downgraded to neutral - target 580 - Merrill Lynch
CBRY reiterated underweight - target 600 from 540 - Credit Suisse
EXPN reiterated buy - target 672 from 651 - Goldman Sachs

NOTE TO SUBSCRIBERS: OUTLOOK Reckitt Benckiser Q1

The Thursday Press Roundup

London shares outlook - lower after mixed NY; Rio Tinto, Prudential in spotlight

Thomson Financial UK at a glance share guide

STOCKWATCH BP downgraded to 'neutral' from 'buy' at Merrill LynchTokyo shares close sharply lower on talk of Chinese interest rate hike

Australian shares close lower on China rate hike fears

STOCKWATCH Persimmon kept at 'overweight' by Bridgewell after AGM trading update

UK smallcap opening - Pentagon Protection firms on airport contract win

Australian shares close lower on China rate hike fears - UPDATE

UK smallcap opening - Adamind ticks up on assets sale completion

FTSE opens sharply lower

UK smallcap opening - Antisoma higher on Novartis deal

STOCKWATCH Rio Tinto falls on Q1 production update; Merrill repeats 'neutral'Tokyo shares close sharply lower on talk of Chinese interest rate hike - UPDATELondon shares open down; miners weigh on easing prices, weak Rio Tinto Q1 outputUK smallcap opening - Manpower Software gains as advisor buys stock

STOCKWATCH Prudential Q1 beats consensus, Goldman Sachs ups tgt to 798pUK smallcap opening - Interactive Prospect up on directors' share buying