* The meltdown in equity markets following the sharp sell-off in U.S. equities is the major focus of the day. The Nikkei tumbled by over 9% and other Asian bourses have tumbled in value. Some say that South Korea could be the next Iceland. * Those looking at equities as a measurre of confidence in the global financial system today must be worried. Asian bourses appeared to have weakened on concerns about global economic growth. However that message seems not to have gotten through to a couple of major central banks. * Fed Chairman Bernanke has to be wondering what he has to do next. Equities are closing sharply lower after he signaled a Fed rate cut at its next meeting at the end of this month. * The markets would have been more pleased with a coordinated program from G7 rather than the current piecemeal approach. * The Russian stock exchange has been closed until Friday. * The USD has eased vs. the EUR, CHF and JPY. The JPY apparently has seen heavy repatriations following the tumb;e in the Nikkei on Toyota’s earning projections. The GBP is easier. * Crude oil prices have fallen sharply. Gold is firmer on a flight to safety. * In line with the deleveraging theme, the commodity currencies (AUD, CAD and NZD) have tubled again. * Asian bourses fell sharply overnight. 10-yr JGBs gained as the Nikkei fell. European bourses are sharply weaker. Key U.S. indices are seen opening lower later.

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