- Shanghai share index ends down 5%, lowest close in a year. Biggest 1 day percentage fall in 8 months
- ECB’s Nowotny: No specific concerns about level of euro, in “normal range.” ECB has no explicit forex rate goals
- Ex-BOJ board member Taya: Japan likely to face sovereign debt crisis in 3 to 4 years
- Greek PM Papandreou: Austerity programme sustainable only if investment and growth stimulated
- EU President Von Rompuy: Spain, Portuguese austerity packages strong, credible
- ECB’s Stark: We are in serious crisis -radio
- UK FinMin Osbourne: Deficit reduction most urgent issue for Britain, need to get moving
- UK CBI May manufacturing order book balance -18, much better than median forecast -32, highest read since Aug 2008
General risk sentiment has improved during the European session after a fairly calamitous Asian session. A number of large banks have come out recommending their clients add to European stock holdings and this will have helped.
EUR/USD up at 1..2338 from early 1.2270. Sell orders noted at 1.2330/50 have just about held the topside so far. More sell orders seen up around 1.2400. Major German bank has been notable buyer this morning having been regular seller last week.
Cable up at 1.4445 from early 1.4320 in what has been a wildly choppy session. Good Eastern European buying noted. Sell orders now noted at 1.4475/80. Market seemed to like what it heard from George Osbourne (see above)
USD/JPY up at 92.45 from early 91.85, with EUR/JPY up at 113.80 from around 112.70, yen undeminned by improved risk sentiment.