The market is down 65 pretty much on the lows of the day. Bank sector, property trusts and media sectors dragging us down. Resources generally up small. The SFE Futures suggested a 25 point fall in the market this morning.

Dow Jones closed down 49. Was up 45 at its highest and down 108 at its lowest. The main stories: UPS profit warning, financials finished lower on SEC filings by Goldman, Lehman and Morgan Stanley and the oil price hitting record levels. Mortgage and Bond insurers also closed down on credit rating downgrades. Citigroup down 0.76% on news it will sell $12 billion in leveraged loans and bonds to private equity firms. Lehmans down 7.17% and Goldman down 2.66% fell on SEC filings showing level 3 assets were up to $45 billion and $85 billion respectively. Level three assets are considered illiquid and complex to value and vulnerable to writedowns. The ex President of UBS says most major investment banks will have to cut staff by 35%.

US oil inventories came in lower than expected last week, pushing the price up by $2.18 to a record $110.87 (hit $112.21) - transportation stocks down, Energy stocks up and Commodities jumped – biggest rise in two weeks - on the higher oil price but more importantly perhaps on higher agricultural commodity prices (rice, corn, wheat) amidst comments about lower global supplies, growing demand, and a falling USD (which means investors buy up commodities as a hedge against inflation). 26 commodities rose an average 2.7%. The Dow Futures suggested a 9 point drop at 11am tonight.

Both BHP and RIO slightly down in ADR form overnight, 0.87% and 0.07% respectively. BHP said this morning it was not aware of any plan by China to buy a stake in the company. BHP closed up nearly 4% yesterday on talk China's Baosteel Iron and Steel, would buy a substantial stake. BHP up 9c today to 4200c. RIO up 12c to 13800c.

Metals all up overnight – Copper up 2.2%, Aluminium up 3.7% and Nickel 1.6%. Zinc up 1%. Zinifex up 9c to 1007c.

Oil price closed in record territory – up $2.35 or 2.1% to $110.89 – after the EIA said oil inventories fell by 3.2m barrels last week, analysts expected an increase of 2.4m barrels. Woodside up 159c to 5660c.

Gold up $19.50 to $937.50. Newcrest up 27c to 3422c, PNA up 2c to 102c. Credit Suisse have upped their target price on Pan Australian (PNA) to 130c from 113c. They retain an OUTPERFORM recommendation. They say the risk to the Laos project has reduced after a reserve upgrade yesterday. US Bonds up with the 10 year yield down to 3.48% from 3.56%.