UK Manufacturing lower

Figures released from Markit and the Chartered Institute of Purchasing and Supply survey, continue to show a decline for the placement of new orders in the manufacturing industries.

The hope is that the UK would export it's way out of the economic doom and gloom but export orders also declined last month.

Other senior European countries, including Germany are also showing minimal growth, though the holiday season may take some of the blame for the bad news. China, the world's second largest economy, is also seeing lower manufacturing levels.

There is a growing feeling that the global economy needs help to stay afloat and a third round of assistance known as QE3, may well be required and this possibility has halted the massive flows out of equities, for the time being.

Recently hard hit bank shares gained 5% to 8% in one day in the UK yesterday and this can easily reverse by similar percentages, so " see a profit, take a profit" is the way to go at the moment. However that is more an intra day strategy and unsuitable for long term investors who are probably staying out of these highly volatile markets.