Hello traders!

I suppose the paring of losses on Wall Street late Friday will give some hope that
the hedge-fund inspired panic is reaching a soft conclusion. Best not to bet on it
though...

Nice little comment in the Telegraph today advising waiting until the "Sage of
Omaha" has sounded the "all-clear" before piling in again...

Also worthy of note, Big Al's late reflection on the Friday Traders Thread that
markets are simply back to the levels they were at in late-April/early-May. A
correction rather than a crash.

Be wise! Be careful!

Good hunting!

G.

Friday's market reports:

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

Panic selling by hedge funds has emerged as the hidden cause of the contagion spreading through the global financial system.

"In the last week people have had to meet margin calls by selling equity positions. The quant strats [quantitative funds] have been hit hardest and it's become a bit of a perfect storm. Prime brokerages are increasing margin requirements so you have a self--fulfilling prophecy and spiral down," said one senior banker.

"The black boxes [funds' computerised investment strategies] are all similar. They are getting completely crushed," added another.

It has also emerged that many funds had invested in the same companies, causing prices in otherwise unconnected companies to fall dramatically.

Hedge fund panic was behind global stock markets collapse

Among Warren Buffett's many timeless market aphorisms, one has stuck in my mind as particularly apt this weekend: "It's only when the tide goes out that you get to see who's been swimming with their trunks off."

Don't plunge back in until Warren says it's safe

CENTRAL BANKS are preparing to launch fresh interventions in money markets this week to avert a full-blown credit crisis after warnings by American analysts that up to $300 billion (148 billion) of loans could be at risk.

Rescue plan to stem market crisis

From their position high in the Eurotower, the skyscraper headquarters of the European Central Bank (ECB) in the heart of Frankfurt, staff keep a close eye on what is happening in the money markets around Europe. On Thursday, the market-operations division noticed that something very unusual was going on. Liquidity appeared to have dried up, and interest rates were soaring.

Panic on Wall Street

Investors are braced for another white-knuckle ride on the markets this week as the fallout from the American sub-prime mortgage crunch starts to claim fresh victims.

US loan crisis set to claim fresh victims

Share prices in freefall, slaughter in Surrey, flood damage costed in the billions, a slowing housing market and a subdued high street. And yet amid all this gloom there is talk of a sixth interest rate rise in 13 months.

Why yet another rise in interest rates will slaughter us

One for the "UPS"

TIO - Mid 46.5p (46 / 47p )
Reason - On the process of double bottom on chart, Iron ore mining company cash rich after placing last May for construction and development of company's assets 1.3bn tonnes of iron ore and ilmenite ores, house broker have a target price of 125p

Another one for the "UPS"

SEY - Mid 12.875p (12.75 - 13p)
Reason - A producing oil company with share price at record lows though oil price is above $71, adqired Whittier,US exploration and production company, for $145m end-March with success rate of 17 out of 20 wells drilled, chart parabolic SAR is ready for the change

NIKKEI	AUSTRALIA	SHANGHAI	HANG SENG

Japan's GDP Growth Slows, Reducing Rate-Rise Chance (Update3)

Thomson Financial Europe AM at a glance share guide: Stocks, oil trade mixed

TFN economic and business calendar to Friday Aug 24

TFN UK calendar and forecasts for today

Thomson Financial UK at a glance share guide - weekend

London shares outlook - higher, but markets braced for further turbulenceThe Monday Press Roundup

Good morning traders!

In Asia today, the Hang Seng ended the morning down just 7.12 points at
21,785.59, while the Nikkei closed up 35.96 points at 16,800.05..

Crude oil for September delivery advanced as much as 46 cents to $71.93 a barrel,
after the price ended 12 cents lower at $71.47 on the New York Mercantile
Exchange Friday.

FOCUS UK Alzheimer's decision to have wide-ranging pharma industry impact

Thomson Financial UK at a glance share guide

BROKERWATCH Kazakhmys upped to 'buy' vs 'neutral', target 1,450 pence

BROKERWATCH AstraZeneca cut to 'equalweight' at Morgan Stanley, tgt 2,540 pence

BROKERWATCH Wolseley assumed as 'buy' at Credit Suisse, target 1,150 pence

BROKERWATCH Rexam reinitiated with a 'neutral' rating at Credit SuisseAustralian shares close higher but off highs after cautious trading

Tokyo shares close narrowly mixed after caution sets in