The main market mover however was late in the US session when the US government announced that they were stepping in to take over Fannie Mae and Freddie Mac.
There would be around $200 billion in new capital plus credit lines available with the management put under the Federal Housing Finance Agency. This has waved a good path for the banking and housing market across US and also will help the global markets including the UK. There is not much data out from the US is the Trade Balance on Thursday and the PPI data and Retails sales due out on Friday.
Not much data out for the Euros this week with the main data due out tomorrow in the form of the Trade Balance for Germany expected at +18.5 Billion along with Trichet speaking on Wednesday. Also due out on the data front is the Industrial Production and CPI on Friday.
Sterling gained ground against the US dollar as poor data was released from the US; this also helped against the Euro as the pound had broader effect. Due out today is the PPI figures for UK expected to be lower at -1.2% than previous -0.6 % figure.