European leaders are drawing up a series of crisis-fighting proposals to raise at an informal EU summit this week that have in the past been rejected by Germany putting further pressure on Chancellor Angela Merkel.

The proposals, which could include empowering the eurozone’s €500bn rescue fund to directly recapitalise faltering European banks and commonly backed eurozone bonds, have been backed by some leaders in the past but forced off the agenda by the German chancellor’s objections.

Calmer and more positive Monday Asia markets, post G8 Summit and as Chinese Premier Wen called for policies to support Growth. EUR, EUR/Crosses, Cross/JPY firmer, with firmer Asian stock markets as well.

US indices closed down, near their session lows, despite a positive start and the long awaited IPO of Facebook those final closing price disappointed.

The software & services, banks and health care equipment & services sectors led the market’s drop.

Posted by Mike Moloney | Account Executive