Greece no closer to a solution; markets begin to get worried

•     Greece no closer to a solution; markets begin to get worried

–    The country will run out of money this month, have nothing to pay large debts in May

–    Finance Minister reassured the markets that he “intends” to pay IMF, but privately he says he purposely said “intend” not “will” because he might not

–    Possible solution:  a referendum or another election to clarify what to do

–    Uncertainty likely to hit Eurozone assets, EUR this week

•     China cuts required reserve requirement

–    Makes more money available for lending

–    It’s a reaction to slower growth, not a sign of faster growth to come

–    AUD gapped higher on the news but likely to prove a false rally

•     Today:

–    US: Chicago Fed national activity index for March
Speakers:  ECB’s Constancio; NY Fed’s Dudley; RBA Gov. Stevens

•     This week:

–    Tuesday: RBA meeting minutes; ZEW survey for April

–    Wednesday:  Australia Q1 CPI;  BoE meeting minutes; US existing home sales

–    Thursday: Global PMI day; UK retail sales; US new home sales

–    Friday:  Ifo survey; US durable goods for March