• Shanghai share index ends down 1.2%, fresh 7-month closing low
  • German March retail sales -2.4% m/m, +2.7% y/y, compared to median forecasts of flat m/m, +0.6% y/y
  • German government source: Greek capital requirements to 2012 are greater than the size of bailout package. Bailout package assumes Greece will return to capital markets after 18 months, step-by-step
  • German EconMin: Aid package is not meant to cover Greece’s entire financial needs for next 3 years
  • Greek government workers to escalate protests over budget cuts - Bloomberg
  • Moody’s: EU/IMF rescue package on Greece not an end to Greek fiscal crisis. Whether Greece can actually adjust budget deficit in line with targets is key
  • Fitch spokesman: Reiterates AAA rating on Spain, stable outlook
  • German new car registrations fall 32% in April. Off 25% in first four months 2010 – VDIK
  • UK April manufacturing PMI 58.0, up from revised 57.3 in March and better than median forecast of 57.4. Highest read since Sept 1994
  • UK March mortgage approvals 48,901, up from 46,882 in February, in line with median forecast of 49,000
  • UK March mortgage lending 0.318 bln, down sharply from 1.848 bln in February and some way below median forecast 1.6 bln. Lowest since July 2009
  • UK March consumer credit 0.325 bln, down from 0.578 bln in February, in line with median forecast of 0.4 bln. Lowest since Dec 2009
  • Greek Labour Minister: Will keep retirement age at 65 yrs
  • Euro zone March producer prices +0.6% m/m, +0.9% y/y – Eurostat

Worries over euro zone’s PIGS (or PIIGS, if you prefer) just wont dissipate. Combine these with worrries over Chinese monetary tightening, the Goldman Sachs saga, the BP rig disaster, slowdown in Chinese manufacturing, and you’ve a nice recipe for a bit of risk aversion. European stocks down this morning, some markets heavily, while oil is off close to one and a half bucks.

EUR/USD started around 1.3200 and slipped early. Sovereign buying was noted around 1.3150 area, but only slowed didn’t stop sell-off.

Stops finally tripped below 1.3150 and again below 1.3130 before defensive buying ahead of 1.3100 barrier option interest lent the pairing some much needed, albeit tenuous, support. W’e’ve been as low as 1.3112 so far.

USD/JPY has been as high as 94.98, unable so far to take out well-documented 95.00 barrier option interest.

Increased risk aversion has seen yen strengthen across the board and USD/JPY is presently back down at 94.65. So far buy orders at 94.50/60 have just about managed too soak up the selling pressure.

EUR/JPY s down at 124.25 from early 125.25.

Cable has had a poor morning against the backdrop of heigthened risk aversion, down at 1.5185 from early 1.5250. Pairing got as low as 1.5170 when stops triggered through 1.5200. EUR/GBP at .8645 effectively unchanged.