A Cup of Tea 7 May'10

The Dow suffered its biggest ever intraday point drop, which may have been caused by an erroneous trade entered by a person at a big Wall Street bank. Citigroup is investigating a rumor that one of its traders entered a trade that helped precipitate a drop of almost 1,000 points in the Dow Jones Industrial Average. US Stocks Market plunged 9 % in the last two hours of trading on Thursday before clawing back some of the losses as the escalating debt crisis in Europe stoked fears a new credit crunch was in the making. Amid the sell-off, Procter & Gamble shares plummeted nearly 37 percent to $39.37 at 2:47 p.m. EDT (1847 GMT), prompting the company to investigate whether any erroneous trades had occurred.

Worries about European sovereign debt turned suddenly into one of the market’s sharpest corrections since the crisis began. A four per cent drop in Chinese stocks started the downbeat mood. Stocks fell to minus nine on the year within seconds that was a pretty shocking move. This is a pretty full-on collapse in risk appetite. Images of Greek protesters taking to the streets in opposition to austerity measures matched an accelerating decline in the euro. Meanwhile, the European Central Bank said it would keep its interest rate at 1%, and would not begin buying sovereign debts.

Nickel dropped 1.3 percent to $21,650 a ton, rebounding from a slide of as much as 6.7 percent to $20,450, the lowest intraday price since Feb. 26. Prices are up 17 percent this year, the most among the six main metals traded on the LME. Nickel fell as much as 16 percent yesterday, the most in intraday terms since October 2008. The metal for three-month delivery had climbed as much as 43 percent this year on signs of revived output of stainless steel, the main demand source.

Indonesia's stock market fell to its lowest level in six weeks on Thursday in continued reaction to the announcement its reformist finance minister was quitting, and Greece's economic woes rattled other regional markets. JSX continued to react negatively to Sri Mulyani Indrawati's decision to quit to join the World Bank in June although some analysts said the impact would be short-lived and the risk to economic policy was manageable. Indonesia's index finished 1.3% lower, earlier falling 3.4% to its lowest since March 24 and adding to the 3.8% loss the previous day.

We see that Indonesian market continues under pressure for today. Green Back will continue to strengthen versus Rupiah. On technical wise I really worry for support 2650 and I prepare Just watch the market. Maintain cash or speculating buy on support on BUMN blue-chip for short-term trading.

Bang Juntri
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