Believing that the collapse of Bear Stearns marked a bottom and the worst is over, investors have shifted their focus from the effects of the credit crisis on the finance industry to fretting about its longer-term consequences on the economy.
US government to sue over sub-prime mortgage selling

Doubts are mounting over a $4bn (2bn) rescue bid for the US's biggest mortgage lender, Countrywide Financial, after a deterioration in its stricken loan portfolio and a downgrade in its debt to junk status.
Junk debt puts Countrywide rescue in jeopardy

The price of oil leapt through the $120 barrier for the first time in New York yesterday. A rise of $3 during the day was sufficient for the commodity to record another landmark in its seemingly inexorable rise.
Crude oil price passes $120 a barrel mark for the first time

The post-credit crisis economic recovery could be "snuffed out" by high oil prices, experts have warned, as the price of crude broke through the $120 mark for the first time.
Growth forecast for UK economy will be hit by rising oil price

As the Bank of Englands rate-setting Monetary Policy Committee gathers this week, its largely united front since the start of the credit crisis last autumn has given way to division. The fraying of the MPCs consensus means that, despite bleak headlines over economic prospects, most of the City believes that the chances are slight of a back-to-back cut in interest rates on Thursday.
Little hope for inflation, so no rates move

The number of properties being repossessed has soared as the effects of the credit crunch push court orders from banks and building societies to record highs, figures will show this week.
Repossessions set to soar to highest level for 17 years

City employers appear to be holding their nerve and not scaling back sharply on recruitment in the light of the credit crunch and feared job losses, according to the body that sets exams for the financial services industry.
City firms hold nerve in the face of credit crisis

Concerns are mounting over private equity investors or the companies they own buying back debt at a discount from banks and undermining the principles of syndicated lending. Banks are alarmed at the prospect of companies picking off members of a lending syndicate to purchase their own debt when syndicates are meant to stick together.
Private equity houses snap up cheap debt

International flights that don't cost a thing? Books or music you don't have to pay for? Even companies handing out cars? Traditional business is based on the certainty that everything has a price. But now US writer Chris Anderson believes we are at the dawn of a new consumerist era, governed by what he dubs 'freeconomics'. He talks to Stuart Jeffries.
The big giveaway

NIKKEI 225	AUSTRALIA ASX200	SHANGHAI	HANG SENG

US Video: Stock Market Technical Analysis 5/5/08

Good morning traders!

In Asia today, the Hang Seng ended the morning up 10.76 points at 26,194.71.

New York's main oil futures contract, light sweet crude for June delivery, reached
an all-time high in electronic trade of $120.23 a barrel, breaking the last record of
$120.20 reached during intraday trade on Monday.

Happy trading!

G.

OUTLOOK Lloyds TSB trading update to throw spotlight on capital strengthTFN UK calendar and forecasts for today

Thomson Financial UK at a glance share guide - Bank Holiday MondayThomson Financial UK at a glance share guide - weekend

*XSTRATA SAYS OUTLOOK FOR 2008 REMAINS VERY POSITIVELondon shares outlook - flat, after slide in NY; BoE rate decision due Thursday

The Tuesday Press Roundup

Thomson Financial UK at a glance share guide

BROKERWATCH HSBC cut to 'neutral' from 'buy' at UBS, target up to 920p vs 880p

BROKERWATCH International Power cut to 'sell' from 'neutral' by Goldman SachsAustralian shares close lower, losses pared as central bank keeps rates on hold

BROKERWATCH British Land cut to 'underweight' in sector review at Morgan StanleyUK smallcap opening - Mariana Resources ticks up on mineral title application

BROKERWATCH Barratt Development cut to 'neutral' vs 'outperform' - Credit SuisseUK smallcap opening - Salamander Energy up on drilling update

London shares open slightly lower after NY slide; BA falls after oil price spikeUK smallcap opening - Anzon Energy falls after terminating merger agreementUK smallcap opening - RAB Capital drops; sees H1 2008 'significantly lower'

UK smallcap opening - Silverjet takes off after performing well in April

STOCKWATCH Lloyds TSB lower as writedown concerns overshadow in-line updateUK smallcap opening - Oilex higher following drilling update

Australian shares close lower, losses pared rates kept on hold - UPDATE

UK smallcap opening - Laura Ashley falls as Baugur evaluates Moss Bros bid

UK smallcap opening - Motive drops after share placing

UK smallcap opening - Rift Oil rises as Puk Puk-1 well drilling date confirmed