- Forex: Traders saw thin market conditions as an opportunity to push EUR/USD closer to 1.50, and the pair hit a new record high above 1.4960. The USD index hit a record low, and USD/JPY dipped below 108 for the first time since June 2005. The KRW lost ground as foreigners sold South Korean shares, continuing its slide after six consecutive sessions of declines. There was a slight reduction in risk aversion, with the Asia ex-Japan Itraxx index falling 6bps to 168bps at the start of trade, falling from yeterday's record highs. Between 17:00 ET and 23:05: EUR/USD +0.57%, GBP/USD +0.56%, USD/JPY -0.55%, USD/CHF -0.77%, USD/CAD -0.42%, CHF/JPY +0.23%, AUD/USD +0.36%, NZD/USD +0.38%, JPY recovered early losses against EUR and GBP.

- Equities: At 23:08 ET the ASX is -0.20%, KOSPI -2.43% and Shanghai Composite Index is -0.89%. Australia's benchmark index traded in tight ranges for most of the morning, but came under selling pressure towards the end of the afternoon. Aussie banks declined for a fourth straight session as bargain hunters remain cautious given lingering concerns over the outlook for credit markets. There was a brief period of bargain hunting among South Korean shares at the start of trade, but foreign investors later dumped shares on worries of a U.S. slowdown. Much of the KOSPI's downside came from shipbuilders and brokerage houses. China Railway Group, a state-owned railway builder, raised 22.44 billion yuan (about US$3 billion) from an IPO on the Shanghai Stock Exchange. Analysts said that the strong demand for the IPO suggests there remains ample liquidity in the market despite the recent slump in Chinese stock markets. Japanese markets were closed for a holiday.

- Commodities: U.S. crude futures held on to gains above $96/bbl, gaining +1.04% between 18:00 ET and 22:48 ET. Oil prices showed little reaction to a report by Roy Mason of consultancy Oil Movements, who that said OPEC oil exports, excluding Angola, will surge 720K bpd in the four weeks to December 8. This marks the biggest rise this year, with most of the extra supply heading to Western refiners. A weak USD and surging crude prices lifted gold higher by 0.63%, last quoted at $809.20. Analysts said that thin market conditions exaggerated gold's upward move, and many feel that gold is unlikely to rally above $809-$810/oz on Friday.

(by Eben Esterhuizen)