Greece is in the headlines with the EU telling the embattled economy it needs to cut its deficit by a further EUR 5 bln beyond what has already been announced (even though it looks unlikely that they will reach even the first goal). On top of that, AIG is back in the headlines, losing an additional $8 bln in the last quarter and saying it may need yet more government aid to meet its obligations.

US equities have lost their overnight gains and are now flat in the futures market. Looks like risk aversion is ever-present.

EUR/USD has pulled back from a foray above 1.36 and now trades at 1.3685.