It has been another wild morning for trading around the world. The biggest action has been in Russia where the central bank’s biggest interest rate hike yet has done nothing to stop a run on the Ruble, which is currently down another 10% on the day following a 13% drop yesterday. The RUB collapse has been driven by a combination of sanctions and the continuing crash in world oil prices. With producers showing no signs of cutting production (in fact EnCana announced this morning plans to increase its capital spending next year) oil remains under pressure with WTI falling under $55.00 and Brent breaking down through $60.00. Other oil related currencies remain under pressure but have not fallen as much as RUB. NOK is down about 1.5% against a soft USD today while CAD is even with USD but underperforming other majors. EnCana cut its oil price outlook for next year to $75.00 from $90.00 suggesting that even the industry doesn’t appear to have fully grasped the magnitude of the damage done to prices by the current supply war. A retest of the $50.00 round number or lower for WTI looks increasingly possible. Recall the 2008 low was near $35.00. Flash PMI and other data points have had a bigger impact on share and currency trading today. China fell below 50 into contraction territory confirming slowdown fears, which weighed on indices across Asia Pacific countries. Stronger than expected flash PMI and ZEW investor survey results for Germany and the Eurozone, however, came in better than expected. This has helped to boost EUR, CHF and SEK, while the performance of indices has been mixed as the results take some of the pressure off the ECB to undertake immediate stimulus action. US indices are trading flat to lower as another attempt to stabilize failed. Speculation over whether the FOMC will remove the “considerable time” guidance for the period between the end of QE3 and the first interest rate increase may keep US markets active right through today and tomorrow. Corporate News Talisman Energy has agreed to be acquired by Spain’s Repsol for US$8.00 per share (about C$9.31 at current exchange rates), or US$8.3B. EnCana increased its capital budget for 2015 to $2.7-$2.9B from $2.5-$2.6B in 2014. Cut its 2015 oil price forecast to $70 from $95. Economic News Economic reports released overnight and this morning include: Russia interest rate surprise 6.50% increase to 17.00% Sweden interest rate 0.00% no change as expected Hungary interest rate 2.10% no change as expected US housing starts 1,028K vs street 1,040K US building permits 1,035K vs street 1,065K Canada manufacturing sales (0.6%) vs street (0.3%) Japan flash manuf PMI 52.1 vs previous 52.0 China flash manuf 49.5 vs street 49.8 and previous 52.0 France flash manuf PMI 47.9 vs street 48.6 France flash service PMI 49.8 vs street 48.5 Germany flash manuf PMI 51.2 vs street 50.3 Germany flash service PMI 51.4 vs street 52.5 Eurozone flash manuf PMI 50.8 vs street 51.5 Eurozone flash service PMI 51.9 vs street 51.5 Germany ZEW current 10.0 vs street 5.0 Germany ZEW expectations 34.9 vs street 20.0 Eurozone ZEW expectations 31.8 vs previous 11.0 UK consumer prices 1.0% vs street 1.2% UK core CPI inflation 1.2% vs street 1.5% UK retail prices 2.0% vs street 2.2% UK producer input prices (8.8%) vs street (9.2%) UK producer output prices (0.1%) vs street (0.6%) UK ONS house prices 10.4% vs street 11.4% Economic reports due later today include: 9:45 am EST US flash manufacturing PMI street 55.2