• Shanghai share index ends up 0.2%, highest close in nearly 3 weeks, shrugs off India rate hike. Banking stocks gain
  • India’s main stock market ends down 1.05%
  • China CBank: Sees rising uncertainties, potential risk in wake of global crisis. Still tough to maintain financial system stability
  • OECD speaking to China over revaluing yuan to contain long-term inflation pressure. Decision is China’s
  • Greek/German 10year govt bond yield spread widens to 338 bps vs 328 bps on Friday. Highest since March 1; Greek 5year CDS rises to 337.5 vs 330.1 on Friday
  • Italian Foreign Minister Frattini: Compromise needed over Greece before EU summit Thursday/Friday
  • Austrian Foreign Minister Spindelegger: EU summit should decide on plan for Greece
  • German govt spokesman: Decisions on aid for Greece not on agenda of EU summit. Greek PM has made it clear in talks with Chancellor Merkel that Greece does not need aid. Financial aid from IMF would be an option for Merkel in an emergency. Government leaders would act if stability of euro in danger
  • FT/Harris poll: Almost third of Germans polled believe Greece should be asked to leave the euro zone while it sorts out it’s finances, while some 40% feel their own country would be better off outside the single currency
  • BUBA March report: Expects resumption of German economic recovery in Q-2, but still susceptible to setbacks and can’t be described as self-sustaining

I’m becoming almost resigned to the fact Monday mornings are going to be a waste of time. Very little change on the majors this morning.

EUR/USD sits at 1.3520, effectively unchanged on the day. We saw an early dip which took out touted 1.3500 barier option interest (1.3498 posted). We then attempted a rally amid talk of sovereign buying, but never managed to get through well-tipped sell orders at 1.3530/50 (session high 1.3545.)

Cable has tacked on about 30 pips, presently at 1.4995. Middle Eastern buying has lent the beleaguered pairing some much-needed support. That said, decent sell interest has been quick to surface on moves above 1.5000 so far. Talk of sell orders lined up at .9050 to 9100 in EUR/GBP has helped cap gains in the cross, which has also lent sterling in general some support. The cross is at .9015 having been as high as .9045.

USD/JPY at 90.60, hardly changed on the day. An early rally managed to get to 90.77, but we remain ostensibly narrow rangebound as we move inexorably toward fiscal year end. Buy orders tipped 90.20 down to 89.80, stops through 89.75. Sell orders 90.80 up through 91.20.