Majors: Overnight saw the following data releases out of the US; the US Empire State Manufacturing Survey for May as well as the Foreign Net Transactions for March. The manufacturing index declined to 19.1 compared to expectations of a small decrease to 30. This indicates that the manufacturing activity is moving towards are more sustainable level of growth. The Foreign Net transactions doubled in Mar to $140.5bio as global demand for US financial assets strengthened. As mentioned above the continuing concerns in Europe are also affecting the EUR with it hitting a 4-year low yesterday, but opening higher this morning at USD1.2390. Since the beginning of this month, the EUR has dropped a staggering 7% and it could continue to fall should the debt concerns not be resolved. The GBP has also fallen, hitting a 13-month low against the USD as fears that the new Conservative-Liberal Democrat government will reveal their fiscal problems are worse than first thought. Also weighing on the sterling was a UK report which showed house prices in the region fell for the first time in 2010.