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Market View

The worries in Greece continue to weigh on the financial markets

Wednesday, May 16, 2012 3:05 AM GMT

Good Morning ,

- The worries in Greece continue to weigh on the financial markets. Risk is
off all over the place. EURUSD for example took out the 1.2700 barriers,
AUDUSD is about to break 0.9900 or in EMG space USDBRL traded for the second
day above 2.0000. US equities turned around after the European close, Asian
markets are in heavy red territory today.

- Stocks: Nikkei -1.47 %, Hang Seng -2.85 %, Shanghai Composite -0.67 %,
Dow Jones -0.50 %, S+P500 -0.57 %

- German Chancellor Angela Merkel and French President Francois Hollande said
they would consider measures to spur economic growth in Greece as long as
voters there committed to the austerity demanded to stay in the euro.
Requests for measures to bolster growth will be "considered" and the
European Union may also "approach Greece with proposals," Merkel said late
yesterday at a joint press conference with Hollande during his first official
visit to Berlin. "Greece can stay in the euro area," and "Greek citizens will
be voting on exactly that."

- Greek political leaders meet on Wednesday to form a caretaker government that
will lead the country into its second election in just over a month.

- Greek President Karolos Papoulias was told by the central bank chief this
week that financial institutions are becoming anxious about their prospects as
Greeks pull out cash after the inconclusive May 6 elections. Central bank
head George Provopoulos told Papoulias that Greeks have withdrawn as much as
700 million euros and the situation could worsen, according to the transcript
of the president's meeting with party leaders on May 14 that was published
yesterday.

- Japan Data Recap                Period   Survey   Actual    Prior     Rev
* Machine Orders mom          Mar     -3.5 %     -2.8 %   4.8 %   2.8 %
* Machine Orders yoy             Mar       4.4               5     -1.1 %   8.9 %

- Japan purchased 8.3 percent of the debt sold by the European Financial
Stability Facility yesterday, a Japanese Finance Ministry official said. The
nation bought 80 million euros of the 960 million euros in five-year bonds,
the official said, speaking on condition of anonymity because of the
ministry's policy. Japan has purchased about 11 percent of the 46.4 billion
euros of EFSF bonds sold since January 2011, according to the official.

- Australia Data Recap                       Period    Survey    Actual    Prior
* Westpac Consumer Confidence      May           -           95.3       94.5
* Wage Cost Index yoy                           Q1         3.5 %      3.6 %      3.6 %

- BHP Billiton Ltd. expects commodity prices to decline over time after their
record growth. "The tailwind of high commodity prices has contributed to
record growth in the sector," Jac Nasser, chairman of the Melbourne-based
company, said today. "Now we have a period where those tailwinds are
moderating and we expect further easing over time."

- 1430 US Housing Starts Apr
- 1430 US Building Permits Apr
- 1515 US Industrial Production Apr
- 1515 US Capacity Utilization Apr
- 2000 US Minutes of FOMC Meeting
- 1830 Fed Bullard
- 1000 Italy Trade Balance Mar
- 1100 Eurozone CPI Apr
- 1100 Eurozone Trade Balance Mar
- 1430 ECB monetary policy conference. Participants include ECB President Mario
Draghi, SNB Jordan, Swedish Riksbank Ingves, ECB Praet and former Cyprus
central bank chief Athanasios Orphanides.

- 1500 German Fin Min Schaeuble
- 1100 var. France Auctions
- 1130 Germany to sell 10y Notes
- 1030 UK Claimant Count Rate Apr
- 1030 UK Jobless Claims Apr
- 1030 UK ILO Unemployment Rate Mar
- 1130 Bank of England Inflation Report
- 1100 Switzerland ZEW May
- 1430 Canada Manufacturing Sales Mar

  (CET)

Have a good day !

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