The post European Union/International Monetary Fund bailout euphoria continues to wind down and this means that the U.S. dollar and the yen are in solid shape.

The euro has eased back to pre-weekend levels, trading closer to the $1.2650 mark in Europe and with $1.25 within sight. A calmer market environment prevails though.

Eurozone first-quarter gross domestic product was better than expectations. Cable is stable, just below $1.50, with limited impact from the formation of a new government and mixed news from the U.K. econonomy/Bank of England inflation report.

Lenovo's Turnaround Man (Forbes)

EUR/CHF is approaching a key 1.40 level, but intervention risk is high, with the Swiss National Bank's Philipp Hildebrand stressing that he will not allow excessive currency strength as deflation remains a problem.

It was a more hesitant session for the Asian equity market, with tightening concerns in China weighing on sentiment. Negative closes were seen across the board, with the Nikkei, Hang Seng and the Shenzen all ending the session lower. The S&P/ASX 200 index outperformed, up 0.55% by the end of the session.

Reports that Morgan Stanley ( MS) is being investigated for misleading clients about mortgage derivatives is weighing on sentiment. European bourses were flat to slightly higher by midday and the S&P 500 futures point at a slightly positive open on Wall Street later Wednesday.

Crude oil prices have recovered from the overnight low, with WTI trading just above the $76 a barrel level.

The risk-off trade has returned and this is good news for the bond market. Ten-year JGB yields were down from a two-week high and the European bond market has opened marginally higher.
A global leader with close to 200 years of experience, Brown Brothers Harriman helps many of the world's most sophisticated mutual funds, investment managers, banks and insurance companies achieve their international business objectives. BBH provides specialist services and innovative solutions to clients that include a global custody network of close to 100 markets, accounting, administration, securities lending, foreign exchange, cash management and brokerage services. BBH operates a global business through 14 locations, including New York, Boston, New Jersey, Philadelphia, Charlotte, Chicago, Dallas, London, Dublin, Luxembourg, Zurich, Grand Cayman, Hong Kong and Tokyo.