Equity and commodity markets have taken a nose-dive this evening as the market absorbs a double-whammy of negative news. Equity markets were shocked to learn that the White House apparently wishes to carve up the U.S. banking giants by forcing the separation of proprietary trading and commercial banking. Citigroup and Goldman Sachs are down over 4% in late trading and other financials are dragging the major global equity indices with them. DJ 30 and S&P 500 are down nearly 2%. In other news the Philadelphia Index for January disappointed heavily coming out at 15.2 vs a forecast of 18.1, and together with poor jobless data put another dent in the recovery story as 2010 begins. The U.S. Dollar and the Yen have been the main gainers as investors flee to cash and bonds: EURUSD touched a new six-month low at 1.4028 today, and EURJPY touched critical support at 127.03. U.S. ten-year note yields dropped 46 bps to 3.375 as investors moved assets to safer havens today. In the commodity pits the precious metals, gold and silver, have plummeted along with crude oil on USD strength. Gold has broken below the $1100 level and has $1080 in sight as the next support. The drop in commodities has put pressure on the commodity currencies: AUD, NZD and CAD are lower against the other majors across the board. AUDUSD has dropped below its 55-day moving average and may retest support above 89.00 soon.