After initially declaring a referendum on the EU crisis package, Premier Papandreou turned around and gave up the idea

after tough pressure both from EU and his own government. Markets don’t like unpredictability and shivered. Cancelling the referendum, however, created a relief rally in Asia with major exchanges increasing more than 3 %.

The G-20 summit of the biggest industrialized countries in the world,meeting in Cannes have watched events intently without being able to contribute to a solution to the nightmare riding the Euro-zone. Greece is constituting 3 % of total EU-economy. The real worry is contagion and Italy and Spain being next in line, being, too, important countries to default.

The Euro has recovered from lower levels earlier in the week Euro/USD trading at 1.3815. Central Bank interventions in Japan buying dollar to weaken the Yen have worked for now; USD/JPY at 78.1028. Oil prices has recovered; NYMEX at 94,25 and Brent 110,75. Gold rallied to 1775 yesterday and is at 1762 in today’s morning trading.

The Greek Parliament is having a confidence vote during the evening probably resulting in a positive outcome after the last days

maneuvers. Rumors from Athens says that Georg Papandreou has agreed to resign, preparing the ground for a broad national unity government.