Turbulence continues, markets lived yesterday an episode of rate reduction by the Bank of England taking rates to the 1.00% which is the lowest since 1694 as banks believed that the global economy is in the throes of a severe and synchronized downturn adding to the ongoing weaknesses in the global banking and financial system which will continue to constrain the money supply.

But the European Central Bank decided not to reduce their rates leaving it at 2.00% the record low, justifying it that reducing rates in a harsh movement would not really support the economy, excluding any projections of Zero rates in the medium term. Yet the most important noted by Trichet that he does not exclude a rate reduction in the meeting which will be held in March, believing that the pause at the time being is the most suitable decision.

Though now we will discard all those thoughts because the awaited day had started, the US Non-farm payroll reading will be released at 8:30 Washington time, markets are anticipating those data just to see to what levels recession deepened in the starting month of the current year. But before we get the US unemployment rates the Royal Kingdom will publish some of the fundamentals that would also clarify to what levels will take place.

The prolonged Credit Crisis which managed to suffocate the world's economies dragging them into a deep recession had intensified massively resulting to huge job terminations leaving more than 2.59 million workers in the United States without any jobs where the companies that they worked in are facing obstacles that would prevent them from functioning.

This contagion was not only hemmed in the Untied States, the spillover had resulted in more job terminations in the leading world economies, where the Unemployment rates in sixteen economies had beaten market expectations reaching to 8.0% in December, also the levels of unemployment rates surged in the royal kingdom reaching to 6.1%.

So according to analysts the US unemployment rate will surge to 7.5% the highest in sixteen years, and the non-farm payroll will clearly show 540 thousand jobs cut. Yet the range of expectations in market is wider, the pessimistic analysts expects to see a total of 750 thousand terminated job but the optimistic analysts see only 400 thousand laid workers; I don't really know from where those analysts gets this optimism they are not considering the worse than expected earnings that was seen in the fourth quarter of the prior.

Those weak data indicates that manufacturing sectors and others will continue to cut their expenses by terminating jobs as they no longer have extra cash to retain, the money saved from the previous years are all subdued toward bolstering their companies especially after the financial sector remain hesitant not lending any money out expecting that the worse is not over.

Markets are in been need for more interventions they can no longer survive the prolonged destruction in financial markets without a radical change which would pull the economy back in order to put it back on track.

Surprisingly the US indices inclined yesterday even after the weak initial jobless claims which had reached to 626 thousand from the previous 591 thousand, Dow Jones industrial average inclined 1.34% or 106.41 points reaching to 8063.07 levels pairing total looses to 8.13%, besides to the S&P climbing 1.64% or 13.62 points reaching to 845.85 levels easing down earlier losses to 6.35% and finally NASDAQ added 2.06% or 31.19 points reaching to 1546.24 levels.

In the currency markets, the US dollar managed to incline against the Japanese yen and the euro spreading some hope for investors where now they can revive back the trade transactions, this retrieved optimism had bolster the Japanese Nikkei index helping to add 1.60% or 126.97 points reaching to 8076.62 levels, pairing some of the losses seen earlier, where now the total losses since the beginning of the year eased to 8.84%.

Even if the non-farm payroll reading turns out to be really bad today markets will shift their attentions immediately to the February 9th speech, where Geithner and Obama might be revealing some details about the new fiscal plan that would be the only chance for the Americans to escape a mini depression or the augmented threats of deflation...

So now lets just wait to see what would the non-farm payroll reveal to us later today, waiting to see if the US futuristic outlook will change or not..