Dow +7 S&P +3.5 NASDAQ +7.5

***Economic Data***

(CL) Chile Jan Trade Balance: $2.1B v $1.7Be

Fixed income prices have eased on Monday after a little confusion at the outset. European stock markets were initially higher until around 6am ET when GM announced the recall of some of its Vibe model over required fixes for possible sticky accelerator pedals wiped out pre-market U.S. futures gains.

The world's attention is on the fiscal malaise in Greece and Portugal. Just a few months ago, policy makers told banks to shore up their balance sheets with more sovereign debt. However, policy makers around the world have since raced to spend money in an attempt to reinvigorate their respective economies, leading to record deficits. Now everyone appears surprised that weaker countries are having difficulty financing their largesse.

The dollar and yen both continues to benefit from ongoing uncertainty over the perceived dangers to the growth outlook within the Eurozone. A weekend meeting of G7 ministers failed to deliver a stronger message than the European commission had delivered last week.

The EUR has managed a decent correction higher in London hours supported by a better tone in equity markets. Spain's IBEX has managed to push almost 1% higher, the Athen's Composite is still out of favour its decline has been limited to just 0.19% at present.

ECONOMIC DATA

(SZ) Swiss Jan Unemployment Rate: 4.5% v 4.6%e; Unemployment Rate Seasonally adj: 4.1% v 4.3%e

(FR) France Business Sentiment: 104 v 102 prior

News and Events:

'We expect and we are confident that the Greek government will take all the decisions that will permit it to reach that goal,' Trichet said. A statement made earlier, but reiterated by EU members of the G7 this weekend.

A new economic week begins after the weekend ended with G7 meeting taking place in Canada, while the European finance ministers said they are going to make sure that Greece meets its target of narrowing the deficit to below 3% by year 2012.

Previous session overview

The euro fell against the dollar and the yen in Asia on Monday as European authorities at the weekend meeting of financial heads from the Group of Seven failed to offer realistic plans to help Greece out of its debt woes.

Market Brief

FX markets did not do much in Asia trading, as traders were still shaking off a very bumpy week. Asian regional indexes were unable to follow Wall Street's late day rally, putting pressure on risk appetite.

The British pound fell to nine month low against the dollar as concerns over euro zone sovereign debt problems boosted the appeal of the greenback as a safe haven currency.

Sunrise Market Commentary

• Global bonds continue to profit from risk aversion.
  On Friday, the US payrolls didn't play the first violin, as the report was close to expectations. It was again tensions in the intra-EMU bond market (government finances) that were in command. In the weekend, there were some supporting comments from EMU officials, but still no plan B that would ease market tensions.
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