Archived IMT (2008.10.02)

Despite the US SENATE's passing of the TARP bill by a more than 60 votes. European stock futures set to open down and so are US stocks. This reminds players that markets are boosted by earnngs cycles and macrofundamentals and not just by Congressional decisions. Wednesday's awful report (lowest in 6 years and biggest drop since mid 1980s) is a stark confirmation of a US recession, wich should and will likely sput the Fed to cut rates. I know EXPECT CENTRAL BANKS TO PICK THE RIGHT TIME FOR COORDINATED INTEREST RATE CUTS as the only remaining firepower in their arsenal. In the event that equity losses escalate into US trade, we may (10% pribability) expect such moves to occur as early as this week. Markets still await the vote from the HOUSE of REPS. USDJPY seen testing the key support of 105.20, while we revise down GBPUSD down $1.7550.