Hello traders,

US stocks were hammered tonight with the Dow retreating to the 10,000 mark as inflation fears, reignited by a surprise rise in consumer prices, overwhelmed a series of strong earnings announcements from the likes of Intel and Caterpillar.

The Dow closed down 115.05 points at 10,012.36, its lowest finish since late October. The Nasdaq Composite slid 18.60 points to 1,913.76 and the S&P500 lost 15.28 points at 1,137.50.

May crude futures closed up 15 cents at $52.44 a barrel on the New York Mercantile Exchange.

More volatility to come tomorrow by the sound of things.... ;-)

See you in the morning with breaking news.

G.

Good morning traders!

As you might imagine, Asian markets are looking a bit fragile, although not down as much as might have been anticipated. The Nikkei was last about 120 points adrift but the Hang Seng was only 35 points short on the day.

In Europe, the Pernod Ricard/Fortune bid for Allied Domecq has been formalised at 670p a share.

Off to find some UK news....

Happy trading!

G.

COMPUTACENTER CUT TO 'SELL' AT MERRILL LYNCH

BPB, TRAVIS PERKINS STARTED AS 'IN-LINE', WOLSELEY AS 'OUTPERFORM' BY GOLDMAN

AFX UK at a glance share guide - 2

MARKETS
FTSE 100 4,822.0 down 33.6
FTSE 250 6,981.7 down 17.4
DJIA 10,012.40 down 115.00
Nasdaq Comp 1,913.76 down 18.60
S&P 500 1,137.50 down 15.30
Tokyo: Nikkei 10,828.97 down 259.61
Hang Seng midday 13,464.25 down 37.38
Gold 434.80 usd (432.50 usd)
Oil - Brent May 53.78 usd (52.94 usd)

BREAKING NEWS
* Pernod Ricard to acquire ALLIED DOMECQ for 7.4 bln stg in stock and cash
* CBI warns Labour on plans to raise taxes; Brown misses forecast; 12 bln stg shortfall feared - FT
* Philips, the Dutch electronics giant, to sell its in-house fund management division and hand over its 16 bln usd corporate pension fund to Merrill Lynch Investment Managers in a tie-up that could spark a wave of copy-cat deals across the globe - FT
* MARKS & SPENCER board divided over future of interim chairman Paul Myners - FT
* Ford turns ignition key on 2.5 bln usd Hertz sale - Times
* SAIC considers building Rover cars in China - Times
* Stephen Marks, chairman and chief executive of FRENCH CONNECTION, heading for a clash over his "unfettered powers" with a leading shareholder advisory group - Independent

PRESS COMMENT
FT
THE LEX COLUMN comments on PRUDENTIAL, REUTERS, US inflation, Spirits (Remy unlikely to become a target itself, due to its family dominated ownership structure; with the shares trading at 18 times forward earnings, its investors could risk a hangover) - TAKING STOCK - A coffee bar crisis brews in the high street: WHITTARDS (one to avoid), COFFEE REPUBLIC, CAFFE NERO, THORNTONS (probably buying opportunities to come for the eagle-eyed) - AUTONOMY (merits its premium)
Times
DIRECTORS' DEALINGS: CARTER & CARTER (three directors buy stock for 104,000 stg) - TEMPUS: REUTERS (short-term investors should steer clear, but those with patience should buy), MCCARTHY & STONE (avoid until the outlook becomes clearer), PROTHERICS (buy)
Express
SHARE WHISPER: EUROPEAN DIAMONDS (understood to have completed a 5 mln stg fundraising at 45 pence a share) - WHO'S DEALING: CARTER & CARTER (directors buy stock)
Mail
MINSTER PHARMACEUTICALS (stock overhang cleared; it has joint venture deals up its sleeve)
Guardian
MINORPLANET (completes long-awaited interim financing) - TRADING EMISSIONS (expected to start trading at 100 pence this morning)
Independent
THE INVESTMENT COLUMN: PRUDENTIAL buy), DS SMITH (hold at best), CI TRADERS (avoid)
Telegraph
QUESTOR: DS SMITH (attractive to income investors alone), PENDRAGON (still a buy), TRIBAL GROUP (worth a look at this level)

Morning all.

Morning all.

Morning all

Thinking of increasing the amount of cash in my portfolio? I don't think things are that positive
at the moment - and may not be for a few months. I have a horrible feeling
that interest rates are going to go up at the next BOE meeting (Election day!)