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

unfortunately we have line probs at the office and can't log in to the system there where i have my gurus prognostications ...... i know his trigger point USED TO BE 11780, but i have a nasty feeling it's nearer 11900 now due to time lines/angles

11797 as I type. Wondering if we'll see -500 for the day

The markets have have got hold of how serious the problems of Italy are. If Italy cannot pay its bills, how long will it be before thoughts of can Spain, Portugal etc.

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DC the markets have known for a long time Italy is next on the list and that seems to be exactly what we have at the moment, a list. Just when I think we will have a period of stability, the next potential defaulter is ramped up and hey presto, off we go again.

Is it coincidence that just as Greece seems to be nearing some sort of solution, the Italian bond interest rates scoot up to an unsustainable level?

I have no idea, but I'm sure a lot of money is being made out of all this, whether that money will be worth anything in a few months time remains to be seen.

Conspiracy theory I guess.

11,771/75 atm - anyone hear those crazy yanks?

Italy prepares to sell 4.2bn of debt amid costs meltdown

Emma Rowley, 20:42, Wednesday 9 November 2011

Italy faces a major hurdle on Thursday as it attempts to sell up to 5bn (4.2bn) of fresh debt against the backdrop of record interest rates on its current stock of debt.

Italian sovereign bond yields yesterday soared above 7.4pc, well above the 7pc threshold that led smaller eurozone neighbours of Greece, Portugal and Ireland (Xetra: A0Q8L3 - news) to seek bailouts.

Analysts expect Rome will struggle to find buyers for its auction of one-year bills on Thursday morning, but that it will stick to the planned sale as well a sale of up to 3bn of five-year debt on Monday for fear of spooking investors still further.

The shares are the assets of the countries. How far can they fall without serious consequences?

The rating agencies rated BearSterns, etc , etc 3A up to bankruptcy, now they downgrade with prospect of ?xxx? which may not materialize at all. Who is behind these, apart from rating agencies?

fully expected ftse to open -120, and though opened -100, it is now only -47 ...... strangely resilient all things considered

Yes its certainly worrying - I amended limit buys on RBS and LLOY, fully expecting them to fall further. Tempted by MER & CIU, but nothing as yet bar a small contrarian long on the FTSE.

I fully expected a rout this morning and was ready to sell anything I had in profit (though probably should have done that yesterday), but seems that many stocks now turning blue again. The steadying influence of the FTSE versus the crazy DOW!

Lucas Papademos named as new Greek prime minister

Former European Central Bank vice-president Lucas Papademos has been named as Greece's new prime minister, following days of negotiations.

Confirmation of Mr Papademos's role came from the Greek president's office.

The news came after leaders of the three main parties making up a new government of national unity met the Greek president to try to reach a deal.

Italian borrowing costs ease as ECB wades in
Louise Armitstead, 21:00, Thursday 10 November 2011

Radical intervention by the European Central Bank (ECB) in the bond markets helped pull Italian borrowing costs backed from the brink - but also pushed up French, Austrian and Belgian yields to record highs.

The yield on 10-year Italian bonds returned to the relative safety of 6.94pc - below the 7pc "bail-out territory".

Traders said markets were calmer after the frantic dumping of Italian bonds on Wednesday, allowing the ECB buying efforts to impact.

Rome sold 5bn one-year bonds at an average yield of 6.087pc - a record high but it was still counted as a success.

But febrile traders turned on French bonds instead, pushing 10-year yields up 30 basis points to 3.47pc.

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France shocked by S&P downgrade error

http://uk.finance.yahoo.com/news/France-shocked-S-P-downgrade-reuters_molt-3204503460.html;_ylt=AlY3u9EmIaPXyWWyUqI5SVzSr7FG;_ylu=X3oDMTE4bGMya2FhBHBvcwM4BHNlYwN5ZmlUb3BTdG9yaWVzBHNsawNmcmFuY2VzaG9ja2U-?x=0

See my post 2436 - I think the yanks in the credit agencies are playing against the west.

October producer price inflation slows more than forecast

(Reuters) - The factory gate inflation slowed to its lowest annual rate since May 2011 in October as input costs eased more than forecast, official data showed slowed to its lowest annual rate since May 2011 in October as input costs eased more than forecast, official data showed on Friday.

The easing pipeline price pressures will come as welcome news for the Bank of England, that kept interest rates at t heir record lows and the target volume of asset purchases unchanged on Thursday to support the fragile economy.

Italy pushes through austerity, U.S. applies pressure

(Reuters) - Italy's parliament is rushing through austerity measures demanded by the European Union to avert a euro zone meltdown, after U.S. President Barack Obama ratcheted up pressure for more dramatic action from the currency bloc.

Italy's Senate approved a new budget law on Friday, clearing the way for approval of the package in the lower house on Saturday and the formation of an emergency government to replace that of Prime Minister Silvio Berlusconi.

Euro Crisis: Italy Passes Crucial Budget Cuts



Sky News 2011, 16:45, Friday 11 November 2011

The Italian senate has voted through austerity measures seen as a crucial move to contain the eurozone debt crisis, paving the way for the end of the Berlusconi era.

The measures include an increase in the retirement age to 67 and widespread job cuts.

Having received approval in the upper house, the bill is expected to be passed through parliament when it is voted on in the lower house on Saturday.

PM Silvio Berlusconi has indicated he would stand down as soon as the reforms are fully approved, which could come as early as this weekend.

Sky's Nick Pisa, in Rome, says respected economist Mario Monti, 68, is being lined up as the potential leader of a broader all-party technical government which is expected to be up and running by Monday at the latest after Mr Berlusconi resigns.

"Mr Monti was greeted with a warm round of applause when he took his seat in the Senate as the debate got under way," he said.

Italy is the third largest economy in the eurozone but it has a public debt of 1.9 trillion euros.

Earlier in the week its borrowing costs reached record highs prompting concerns that it could default on the debt.

France would be at most risk in that scenario as its banks hold $416bn (261bn) worth of Italian debt, according to the Bank of International Settlements, more than half of all European bank lending to Italy.

British banks, on the other hand, have an exposure to Italy of $17.4bn (10.9bn) but the effect on France would have a domino effect on the UK as it holds French debt.

European stock markets received a boost as Italian policymakers approved the financial reforms, and the country's borrowing costs continued to fall.

Meanwhile, Greece has sworn in its new prime minister Lucas Papademos, as well as his cabinet.

Finance minister Evangelos Venizelos is to remain in his current post.

US President Barack Obama has urged European leaders to take dramatic action to stem the crisis, echoing calls by his treasury secretary Timothy Geithner.

Mr Geithner said Europe (Chicago Options: ^REURUSD - news) must act quickly to quell its debt crisis and said economies on the Pacific Rim should boost demand to strengthen their defences against a fallout.

With continuing uncertainty about Greece, there have been reports that the euro area's stronger economies are considering excluding some of its weaker members.

Britain's prime minister David Cameron added that there are "real question marks" over whether the countries could deal with their debts and on the single currency's future.

Chancellor George Osborne said although the eurozone crisis is having an impact on British businesses, the UK must stick to its austerity plan to reassure markets about the country's debt

Louise Armitstead, 22:18, Monday 14 November 2011

Spain and Italy's borrowing costs soared as economists warned that Europe is sliding into recession and Angela Merkel defied intense pressure and ruled out issuing European-guaranteed debt.

The German Chancellor told her party conference that Europe faced its "toughest hour since the Second World War" - but that Germany would not support launching 'eurobonds' to solve the crisis.

Instead Ms Merkel said she would push for changes to European treaties to introduce sanctions for financially lax countries and the adoption of a financial transaction tax - with or without Britain.

David Cameron warned that the European Union would be "in peril" unless politicians agreed radical reforms. Speaking at the Lord Mayor's banquet last night, he said markets were "understandably tense" since the eurozone was not "a place to admire and emulate... but a source of alarm and crisis".

Traders sold equities and bonds amid doubts that politicians will act in time to prevent a recession. Eurostat said industrial production in the eurozone fell 2pc between August and September, the biggest monthly fall for two years. The Organisation for Economic Cooperation and Development (OECD) added that the slow-down is likely to continue in all developed economies. France's CAC (Frankfurt: 924169 - news) index fell 1.3pc and Germany's Dax (Xetra: ^GDAXI - news) , 1.2pc.

In the bondmarkets, Italy was forced to pay 6.29pc to raise 3bn (2.6bn) of five-year bonds - a eurozone debt auction record, despite the promise of a new government under Mario Monti. Italy, which still lacks a cabinet, needs to raise a further 46bn in debt before the end of the year.

Panicked traders looking for the next eurozone victim turned on Spain pushing bond yields above 6pc for the first time in three months. Spain faces more hurdles this week with the auction of up to 3.5bn of short term bonds today - and a further 4bn in 10-year bonds on Thursday.

Despite its far lower public debt level levels, traders bet that Spain would follow Italy into "bail-out territory." French bank Societe Generale said: "Spain is now joining Italy on the radar screen". Warren Buffett, the US investor, said bond markets were displaying a "partial run on Europe." British borrowing costs fell to just 2.2pc.

Michel Barnier, the EU markets commissioner, said he wanted to ban credit rating agencies from rating bonds from bailed-out countries. He told French radio that the agencies could lose the "right to rate certain countries for a certain time that are receiving an international support programme from the IMF (Berlin: MXG1.BE - news) or European Union." But few could see how the ban could be imposed.

In Athens, a debate over Lucas Papademos' leadership starts in the Greek parliament today. The new premier has to win a confidence vote tomorrow and then prepare next year's draft budget to take to his first showdown with eurozone finance ministers in Brussels on Thursday.

Antonis Samaras, leader of the Greek opposition, warned that he would not support Mr Papademos' interim government for more than three months without elections. His

This is bound to have repercussions.

Chancellor George Osborne set to 'reassess' PFI

Chancellor George Osborne has announced a "fundamental reassessment" of the use of Private Finance Initiative contracts in a bid to cut costs.

Sir John Major introduced PFI in 1992 to allow private companies to finance, build and run public sector projects.

Mr Osborne said he wants to draw on private sector innovation at a lower cost to the taxpayer.