Japan took a turn for the worst today led predominantly by Exporters (Toyota, Nissan, Honda) all down around 5.5% but even they were led by the Nobel House (Nomura). Nomura reported a 49% drop in Q3 profits and then saw its shares plunge 10.2% in today’s trading. The Nikkei closed down -3.15% on the day and even in late trading in the States futures recovering slightly from the days low (16,618) but is still down an additional 310pts (at 16,890) -1.8%. HSI also had a poor day closing down 2.3% whilst the Shanghai Index finished the day small lower just -0.3%. Both the HSI and China are bouncing with US stocks and are currently +0.6% higher, while the Nikkei struggles.

In Europe it appeared as though it was the DAX that was applying pressure across the board. Other core markets (FTSE and CAC) each had a moment to shine moving into positive territory at one stage but once we saw the ADP number all Indices were shaken again. Closing on the day DAX -1.55%, CAC -1.3% and FTSE -1.4%. IBEX and FTSE MIB (Italy) faired even worse closing down 2.55% and -2.9% respectively. Again it was Energy and Financials that led the way despite seeing a rally in the oil price late in the day. Some of the Italian banks were top topic again (Banca Monte Pischi Siena -6.7% and Banca Popolare Milan -9%. We even saw Deutsche Bank resume its downward trajectory losing another -3.8% today. This puts the YTD decline around -30% and a 1yr Rtn of -43.7%.

The US had a very significant swing today with initial weakness (-250 points) only to produce a stellar bounce back to close up +180 (+1.1%). Dealers claim the Dow is following Oil, after the Inventories (+7.8mio Barrels last week) were released but shortly after the release Oil rallied 8%. Then dealers are claiming it was the USD weakness (-1.5% against the basket tdy – latest data ISM release questions FED intentions) that stocks were following but then stocks bounced! For whatever reason the volatility is here for a while; so best to settle-in and play the ride.