US car makers got their Christmas presents early this year as the US government laid out plans of a $17.4bn rescue package to keep the big 3 out of bankruptcy. Equity market futures have benefited from this primarily with Asian stock indices moving higher and the risk atmosphere decreasing into the short week. Dollar has weakened by over a cent against sterling as a result and is also a little off of Friday’s close against the euro.

Sterling has managed to hold on to the majority of its gains against the single currency over the weekend although its next move is up for considerable debate. The Irish government have poured €5.5bln into the banking sector over the weekend in the hope of ‘staving off a crisis’. Anglo Irish Bank will now be effectively state owned with the government taking increasingly large chunks in the remainder. The 3 main Irish banks have pledged to increase lending to SMEs by 10% and first-time buyers by 30%.

The data schedule is naturally fairly light this week although Jean Claude Trichet is due to speak tomorrow afternoon and any comments on recent euro strength will be keenly interpreted.

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