Another night of turbulence on the markets, with most major indices suffering heavy losses.

The Dow once again bore the brunt of the losses, tumbling more than 1,100 points from its session high of 24,953.90. After reaching session lows of 23,834.62, it proceeded to recover around 200 points, to be currently trading at 24,025.20. Plenty of volatility still remains in the market, so it remains to be seen if the Dow fall further or it continues to recover from this low. The Dax followed the Dow’s lead, falling away from session highs of 12,550.35. It dropped more than 400 points to be currently trading at session lows of 12,132.40.

The EUR/USD continued to weaken as the USD holds strength during uncertain times. It was a roller coaster throughout the night, ebbing and flowing in the $1.22 range. It reached highs of $1.22943 before hitting session lows of $1.22106. It has since bounced off those lows to be trading at $1.22506. It was a much different story for the pound, which went off to the races after the interest rate meeting. Better-than-expected growth, inflation and wage growth outlooks sent the pound soaring more than two cents against the USD. The GBP/USD pair went from session lows of $1.38442 to highs of $1.40666. It then gave up most of its gains, dropping down to $1.38776. It is currently trading at $1.39212.

Turning to the events of today and the main focus will be on the Dow’s recovery, but there are still important events occurring around the world. One such crucial event is the US Government spending bill meeting.  This is another meeting to discuss funding of government services. This may end with no result and lead to another Government shutdown. This time however, the US senate has agreed to a two-year spending package. It now has to pass the US congress. Other announcements today include:

Japan – M2 Money Stock, Tertiary Industry Activity

China – CPI, PPI

Australia – Home Loans, RBA Monetary Policy Statement

Canada – Employment Change, Unemployment Rate

US – Final Wholesale Inventories

Europe – French & Italian Industrial Production, Swiss Unemployment Rate

UK – Manufacturing Production, Goods Trade Balance, Construction Output, Industrial Production, NIESR GDP Estimate, MPC Member Cunliffe speaks

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