Yesterdays drop in equity markets was very significant and we expect the equity markets to retrace a bit today. EURCHF sold off, but nothing happened in EURJPY.


What's going on?
S&P500 broke the 800 level and the general market traded 4% lower. Especially energy and utility shares were hit. We maintain that a test of the Oct-Nov lows is in the cards.

The Russian market (MICEX and RTS) were closed - limit down.

Crude Oil broke the important $35 level. We maintain a bearish stance.

EURUSD again broke lower, now trading around 1.25. Watch out for further downside on the Eastern European unravelling.

Data today: BoE Minutes, FOMC Minutes, US Industrial Production and US Housing Starts