Tuesday 20th April……The follow through on the risk-aversion to the SEC/Goldman’s charges has failed to materialise. The dollar and the Yen are off their highs and stock markets look steadier at current levels. Very difficult FX markets to trade and best watched for a while in our opinion.

Dollar and yen weakened as stocks rebounded on news that was split 3-2 when voting on the possibility of suing Goldman Sachs on frauds. Investors viewed that as a sign of unfirm base for the prosecution. DOW managed to rebound by more than 70 pts to close at 11092 and hold above 11000 level. Asian stocks followed with Nikkei up 56 pts. Meanwhile, crude oil is now trading back above 82 level while gold has 1140 back into its radar. Risk aversion is temporarily eased however there are still concerns that Goldman’s probe might spread to other banks.

According to a source, ECB Weber, a leading candidate to succeed Trichet as ECB president next year, told German lawmakers that Greece may need more aid than the EUR 45b that’s current prepared from EU countries and IMF. The financial assistance needed maybe of as much as EUR 80b. Weber said that the situation was worsening and the numbers are changing all the time. German Finance Minister Schaeuble warned that Europe must not permit “the bankruptcy of a euro member state like Greece to turn into a second Lehman Brothers.”

More tightening measures from China are also limiting recovery in Asian stocks. China ordered developments to refrain from taking deposits for sales of unfinished apartments without approval. Developers are required to disclose all apartments available and prices and the government will punish “artificially” created supply shortage.