EU finance ministers reconvene in Brussels

To discuss further details on EU plans for Greece and the next steps. The euro has taken a beating over the past couple of weeks over the wrangling with Greece and ministers need to tread carefully or risk further fear in the markets and selling of the euro. Aside from this we have very little to focus on today. Risk appetite remains weak as Greece and other European countries continue to undermine confidence; in addition monetary tightening in China and comments of revaluing the Yuan are adding to the reduced confidence. In relation to the Yuan Jim O’Neill from Goldman Sachs suggests that China may revalue the Yuan by up to 5%- this may not happen especially during Chinese New Year but it is still a possibility and hence undermining risk.

Better than expected retail sales data on Friday from the US at +0.5% for January helped to stave off further fear in the markets but was not enough to turn the tide.

Today we have lots of closed markets with a US holiday for President’s day, Family day in Canada and the Chinese New Year leading to markets in China, Taiwan and Vietnam to be closed all week. With little economic data from Europe we will instead focus on the week ahead with inflation data from the US, UK, Germany, Canada and New Zealand.