their money as they were doing previously resulting from the continuous job terminations that have been taking place since the prior year.

According to the released data, we saw yesterday spending in the United States continued to weaken as people tended to save their money just to prepare themselves to more downturns in their economy, yet the fundamentals released last night justifies why we saw the deep contraction in the final three months of the past year.

The turbulence resumes and based on that now the new economic team are preparing another plan that would cushion the housing sector and home owners from leaving their homes, this step would obligate banks to restructure the loans for individuals so they can be able to pay back the loans taken from the financial sector.

Based on those weak fundamentals and weakening earnings the US indices closed in red except for NASDAQ gaining 1.22% or 18.01 points reaching to 1494.43 levels, the Dow Jones industrial average fell 0.80% or 64.03 points reaching to 7936.83 levels and S&P 500 lost 0.05% or 0.44 points reaching to 825.44 levels.

After the US session closed Bank of Australia came out to release out a new rate reduction with 100 basis points taking down their benchmark to 3.25% reaching the lowest in 45 years from the previous 4.25%, where also the central bank decided to intervene in markets spending almost 42 billion Australian dollars in order to stop their economy from dipping deeper into recession, giving the Australian citizens a total of 12.7 billion Australian Dollars and investing 28.8 billion Australian dollars in the infrastructure.

Interventions continue, the Bank of Japan decided earlier today to invest a total of 1 trillion yens, by purchasing stocks from the financial sector where those shares will be held by the bank just till March 2012. The aim of those interventions is to bolster the financial sector along with restoring the long lost confidence in the financial sector which have been tumbling badly in the prior period.

Yet fears of continues weakness in earning levels had resulted in pushing the Asian indices to close in the red zone; the Japanese Nikkei fell 0.62% or 48.47 points reaching to 7825.51 levels with Topix falling 0.52% or 4.06 points reaching to 773.79 levels; Hong Kong's Hang Seng index fell 0.33% or 42.15 points reaching to 12819.34 levels.

Digging deeper into the European economies...

We started our fundamentals with the German Retail Sales, contracting for the third consecutive month, falling -0.2% on the month and -0.3% on the year ending December. This reading clears out that the domestic demand weakened especially after the Unemployment rates surged in December and January, where now more confirmations are taking place a retraction in the GDP took place in the fourth quarter.

Even with those weaknesses the European Central Bank won't consider reducing rates later this week, especially after Trichet the banks Chairman said that the most important meeting will be held in March because more important fundamentals will be released that clarifies how bad the situation is.

The ECB had slashed their interest rates for a fourth consecutive time in the prior period just to stop the bleeding in their economy, but the ongoing Credit Crisis that materialized on the economy had pushed the sixteen economies in a deep recession leaving them with some options of recovery.

Also the Europeans will be waiting for the Producer Price Index, with expectations that the prices fell in December -1.2% from the previous -1.9%, yet easing to 2.1% on the year from the previous 3.3%. The falling prices came as a result to the dramatic fall in crude prices along with the severe weakness in the European domestic and international demand.

Moving to the solo economy in the European Continent which is the United Kingdom, the one and only fundamental for today is the PMI Construction where it might continue dipping into a contraction reaching to 29.0 levels in the prior month, the construction sector in the United kingdom join with 6% of the total growth, where a falling construction will clarify that the kingdom will continue to suffer from the housing dilemma which is a result from the US spillover.

Flying to the North American Continent, we will witness later today the December Pending Homes Sales with expectations that sales will incline to a flat reading coming slightly better than the previous fall of -4.0%. The housing sector continues to tumble and more weaknesses are about to float on the surface pushing the new administration to continue inventing new plans that would support their economy....