Indices across the globe had lost yesterday most of the gains that were seen since the beginning of the year, all that comes due to the ongoing fears from augmented numbers of unemployment rates in the United States,yet this did not really stop their where it diffused to other continents such as the European and the Asian.

Dow Jones Industrial Average lost 2.72% or 245.40 points reaching 8769.70 levels erasing all gains were seen earlier; the S&P 500 fell 3.00% or 28.05 points reaching 906.65 levels leaving only 0.38% from the total gains seen in the past eight days and NADSAQ fell more than 3% reaching 1599.06 levels as fears in markets continue due to the severe job terminations which are taking place nowadays continue to the eleven episodes lived in the prior year.

Markets got stunned by the number of private jobs terminated in December, reaching to the 693 thousand surpassing all markets projections, if the private sector shed that number of workers then how about the other sectors in the economy?? They are in total horror; all the plans released to bolster the economy had failed in stopping this huge downturn.

The continuous fear diffused to the Asian markets, Nikkei index lost 3.93% or 362.82 points reaching 8876.42 levels erasing all the gains that was seen in the past seven days; the Hang Seng index lost 3.71%

Asia is now under great stress, with china's growth heading south due to the continuous fall in the export levels to the world; the Chinese Pearl River which is known by one of the leading economic regions in addition being the manufacturing center contributing with more than 10% of the Chinese goods had felt the heat of the Credit Crisis, leaving the Chinese economy with no support which threatens the growth reading in the upcoming period.

Also indices fall was supported by the fall in crude prices especially the US crude inventories rose 6.7 million barrel from the previous -0.5 million barrel; crude prices fell heavily from a high of $49.40 per barrel to close at $42.16 per barrel, but since the early morning crude prices inclined slightly to currently trade at $42.89 per barrel after recording a low of $42.22 per barrel earlier.

The gloomy outlook continued and the downside risks to growth remain substantial, due to that the Bank of England governor will consider another reduction of rates just to prop up the growth levels and stop inflation from dipping down into the red zone. Markets projects 50 basis points cut taking the benchmark rates down to 1.50% from the previous 2.00%, this cut will be fourth executive month.

In October the Bank of England slashed rates with the joint committee with a total of 50 basis points, but when they saw that the economic status needed more contribution so they decided to slash a total of 150 basis points in order to revive the economy taking rates to 3.00% from the previous 4.50%, but it did not stop their. In December the bank reconsidered to continue the harsh cuts due to the intensification of the Credit Crisis that materialized in the real economy taking rates down to 2.00%.

From a neighboring economy German Trade Balance surplus narrowed down to 9.7 billion in November along with the Current Account trade balance surplus also narrowed to 8.6 billion from the revised previous 14.3 billion. Deeper into the reading we can see that the imports levels weakened to -5.6% clearing out that the domestic demand is weakening massively, but the fall in the export levels came worse than the previous reaching to -10.6%.

Germany is known to be the main contributor to the zone's growth reading because the biggest portion of exports comes out from this economy; falling exports along with imports would cripple the overall GDP of the zone.

Our calendar also contains some European confidence data, Consumer Confidence will continue to weaken in December reaching to -26 levels, the Economic Confidence eased down to 71.8 according to market projections from the previous 74.9 levels. All sectors in the zone are feeling the heat of the protracted Credit Crisis which materialized on the real economy.

Finally we will be sealing our fundamentals for today with the US jobless claims, according to markets estimates the initial jobless claims will climb higher to 545 thousand coming worse than the previous 492 thousand, in addition to the continuing claims easing slightly down to 4483 thousand from the previous 4506 thousand.

The Unemployment reading across the globe is attracting all attention at the time being which is considered to be the major market mover in the harsh times.