LONDON, May 17 (MNI) - The release of stronger than forecast CBI industrial trends data provided sterling with a late morning lift, but the move failed to retest earlier recovery highs of $1.4453. Cable had been pressed to lows of $1.4249 in early Asia as the market reacted to negative press reports concerning UK debt obligations faced by the new government. Cable was back below $1.4400 ahead of the New York open.

BRUSSELS (MNI) - New legislation forcing hedge funds based outside the European Union to comply with EU rules before they can market their investment products to EU citizens are set to be the focus of a meeting of EU finance ministers in Brussels on Tuesday.

The legislation - called the Alternative Investment Fund Managers Directive - aims to increase transparency in the E2 trillion alternative investment market, which includes the hedge fund and private equity industries.

PARIS (MNI) - There is "nothing dramatic" about the euro's current level and the recent slide could bolster the economic recovery, France's chief financial market watchdog said Monday.

At a four-year low around $1.23, the euro-dollar level is "entirely acceptable," Jean-Pierre Jouyet, head of Financial Market Authority (AMF) said in a radio interview, reminding that the single currency was initially launched at $1.17.

SINGAPORE, May 17 (MNI) - The U.S. dollar held a firm tone through the afternoon in Asia Monday, trading off session highs against most major currencies, as the euro continued to trade near a fresh four-year low as risk aversion stayed elevated over euro-zone debt worries.

Asian stock markets followed Wall Street's Friday losses, with Japan's Nikkei 225 index closing down 2.17% at 10,235.76 but off its session low of 10,158.30 while the Shanghai Composite Index ended the day down 5.07% at 2,559.93.

SINGAPORE, May 17 (MNI) - The U.S. dollar scored healthy gains against most currencies except the yen in the Asian morning Monday, as the euro sank to a four-year low when fresh jitters erupted over the debt crisis in the euro-zone, causing a jump in risk aversion.

Asian stock markets followed Wall Street's Friday losses this morning, with Japan's Nikkei 225 index ending the morning down 1.98% at 10,255.01 while the Shanghai Composite Index closed down 2.95% this morning, at 2,617.09.

By Dennis Pettit

NEW YORK, May 14 (MNI) - The euro was nursing steep losses vs. the dollar Friday while also slipping against the yen and other currencies as yet another round of jitters about the fiscal and political health of the eurozone sent the single currency to an eighteen-month low.

Euro-dollar was changing hands at $1.2385 in afternoon dealings Friday, holding at the lower end of the day's $1.2358/1.2530 U.S. hours range, the euro beginning the day around $1.2480 and pressing to its best level early in the day.

By Vicki Schmelzer

NEW YORK (MNI) - Speculative accounts built a new record net euro short position and trimmed their net yen short position, as of May 11 according to data released Friday by the U.S. Commodity Futures Trading Commission.

The non-commercial futures-only (ex-options) section of the CFTC's Committment of Traders report showed that speculators increased their net euro short position to -113,890 contracts.

By Vicki Schmelzer

NEW YORK, May 14 (MNI) - The EU/IMF's E750 billion stabilization plan, cheered only Monday, was a distant memory Friday, as evidenced by renewed eurozone peripheral spread widening, albeit not back to last week's wide levels, and the euro trading at 18-month lows.

The European Central Bank's efforts to buy sovereign bonds did have the desired effect of narrowing spreads this week, but the central bank is seen as having to implement a "big liquidity expansion" to keep borrowing rates low so peripheral countries can roll over their existing debt.