CFD Markets News and Forecasts — 12-02-2014

Hang Seng 22,285.79 +322.81 +1.47%       

S&P/ASX 5,310.05    +55.56 +1.06%

Shanghai Composite 2,109.96 +6.29 +0.30%

S&P 1,819.26 -0.49 -0.03%

NASDAQ 4,201.29 +10.24 +0.24%

Dow 15,963.94 -30.83 -0.19%

FTSE 6,675.03 +2.37 +0.04%

CAC 4,305.5 +22.18 +0.52%

EUR/USD $ 1,3592 -0,38%

GBP/USD $ 1,6595 +1,18%

USD/CHF Chf 0,9006 +0,44%

USD/JPY Y 102,53 +0,27%

EUR/JPY Y 139,35 -0,12%

GBP/JPY Y 170,12 +1,43%

AUD/USD $ 0,9025 +0,85%

NZD/USD $ 0,8319 +0,65%

USD/CAD C$ 1,1001 -0,49%

00:01 United Kingdom RICS House Price Balance January 56% 59%     

00:30 Australia Unemployment rate January 5.8% 5.9%   

00:30 Australia Changing the number of employed January -22.6 15.3    

01:25 Australia RBA Assist Gov Debelle Speaks               

07:00 Germany CPI, m/m (Finally) January -0.6% -0.6%  

07:00 Germany CPI, y/y (Finally) January +1.3% +1.3%  

08:15 Switzerland Producer & Import Prices, m/m January 0.0% -0.1%  

08:15 Switzerland       Producer & Import Prices, y/y January -0.4% -0.3%          

09:00 Eurozone ECB Monthly Report February                             

10:05 Australia RBA Assist Gov Kent Speaks                                            

13:30 Canada New Housing Price Index December 0.0% +0.2%

13:30 U.S. Retail sales January +0.2% 0.0%          

13:30 U.S. Retail sales excluding auto January +0.7% +0.2%      

13:30 U.S. Initial Jobless Claims February 331 331           

15:00 U.S. Business inventories December +0.4% +0.4%

15:00 U.S. Federal Reserve Chair Janet Yellen Testifies                                      

21:45 New Zealand Food Prices Index, m/m January -0.1%                    

21:45 New Zealand Food Prices Index, y/y January +1.5%

The euro exchange rate dropped significantly against the U.S. dollar , which was mainly due to the statements Benoit Kerr, a member of the ECB Governing Council , regarding the fact that the ECB is "seriously " considering lowering the overnight interest rate , charged by banks on deposits to negative territory. However, he does not expect a significant effect of this measure .

" This is what we are discussing very seriously. But do not expect too much from it , "- said Kerry , referring to the effects of negative interest rates on deposits for the economy.

Kerra repeated for several months that the central bank still has room for action to stimulate recovery in the euro against the background of weak growth and low inflation . These actions may include the purchase of assets in the secondary market and reducing deposit rates to negative territory , which will lead to the fact that a bank will take a percentage of the deposit of their funds at the ECB .

This measure, which is almost without precedent in the eurozone, could encourage banks that hold funds on deposit with the ECB's current interest rate of 0.0 % , to redirect the excess liquidity in the euro-zone economy . But it will also increase the costs of banks that may impact on their customers, making loans more expensive.

Also influenced the course of trading words the Federal Reserve Bank of St. Louis , James Bullard , who noted that the unexpectedly rapid decline rates b / d to 6.6 % last month should soon push the FOMC to return to the framework of a more " traditional" strategy of monetary policy.

Rate b / d in the U.S. reached nearly 6.5 % target level set by the Central Bank as a threshold value for which the monetary authorities can target in terms of start raising rates . Bullard called FOMC changes to a "statement of intent " and " give more quantitative estimates " on monetary policy , abandoning the threshold levels.

Pound has risen considerably against the U.S. dollar after the Bank of England has made changes to the policy of transparency. According to the Bank of England inflation report , published today , the Central Bank is going to keep rates at a record - low of 0.5 % , at least for another year, even if the unemployment rate / p fall to 7% threshold that, according to expectations occur in Q1 2014 . Bank of England pointed out that the British economy will grow even before the Bank to raise rates . But it is worth noting that the increase will be gradual and not to such a high level , which was celebrated before the crisis.

"The consequences of the financial crisis and the availability of economic obstacles indicate that some time rates should be kept at a low level , - the report says . - Even when the economy returns to a normal level of production capacity , and inflation closer to the target level , the bank rate will be significantly lower than 5 % ( level set before the crisis ) . "

MPC predicts that in the last quarter of 2013 Britain's GDP to grow by 0.9 % against the previous estimate of 0.7 %. As for the remainder of 2014 , the Central Bank expects to rise by 3.4 % versus 2.8 % November forecast . As for inflation , according to expectations, in the 2nd quarter of 2015 its growth will slow to 1.7% , and then accelerate again in 2016 and will reach 1.9%.

Bank of England Governor Mark Carney , speaking at a press conference after the release of the report , noted that Britain's economic recovery is underway, but it "still is neither stable nor balanced ." He defended the policy of transparency , noting that it has helped reduce the rate hike expectations .

The yen traded slightly higher against the dollar , though lost some previously won positions . Little impact on the bidding had words BOJ board member Takahide Kiuchi , who reported that an extra dose of easing monetary policy to prevent a potential recession caused by the expected introduction of a sales tax in April , could do more harm than good.

Of the nine members of the Board of Directors Kiuchi among those most concerned about the downside risks and is known pessimistic regarding the economic prospects of the country. He fears that the slowdown in the emerging economies of the world will cause drop in exports and that sluggish wage growth will slow consumer spending. And another round of additional easing could lead to the fact that the market may take longer , said Kiuchi .

"It's hard to say how much additional attenuation affect the rise in prices," - he added. Monetary policy " is designed to create an environment in which the Japanese economy can reach its full potential ," - said Kiuchi , warning against heavy reliance on monetary policy as an economic tool . He stressed the importance of strengthening the economy through growth strategies and structural reforms.

European stocks rose for a sixth day, their longest winning streak this year, as companies from ING Groep NV (INGA) to Societe Generale SA (GLE) posted profit that beat estimates, and a report showed Chinese exports surged.

The Stoxx Europe 600 Index advanced 0.7 percent to 331.85 at 4:30 p.m. in London. The equity benchmark has risen 4.5 percent since Feb. 4 as investors assessed when the Federal Reserve will announce the third reduction to its monthly bond-buying program. The gauge remains 1.3 percent below the six-year high it reached on Jan. 22.

In China, the General Administration of Customs said exports jumped 10.6 percent in January from a year earlier. That compared with the median projection of economists survey for a gain of 0.1 percent. Imports rose 10 percent, exceeding the 4 percent advance that economists had predicted.

A gauge of commodity producers posted the best performance of the 19 industry groups in the Stoxx 600. Rio Tinto Group, the world’s second-largest miner, added 1.3 percent to 3,506 pence, and Glencore Xstrata Plc rose 1.3 percent to 337.2 pence.

In the U.K., the Bank of England said in its quarterly economic outlook that it will leave its key interest rate at a record low even after the unemployment rate falls to the threshold level of 7 percent. A release last month showed the jobless rate slid to 7.1 percent in the three months through November, nearing the level at which Governor Mark Carney had said policy makers would consider increasing interest rates.

National benchmark indexes advanced in 11 of the 18 western-European markets.

FTSE 100 6,675.03 +2.37 +0.04% CAC 40 4,305.5 +22.18 +0.52% DAX 9,540 +61.23 +0.65%  

ING rallied 3.7 percent to 10.55 euros. The Dutch lender posted fourth-quarter net income of 539 million euros ($733 million), exceeding the 254 million-euro average projection of analysts. Earnings at ING Bank more than tripled. Underlying net income rose 22 percent in 2013 to 3.26 billion euros, ING said.

Societe Generale jumped 5.1 percent to 46.52 euros. France’s second-largest bank posted fourth-quarter net income of 322 million euros as earnings climbed at its French and Russian consumer-lending units. Analysts on average had forecast 163 million euros of profit. The lender posted a loss of 471 million euros in the year-earlier period.

Norsk Hydro advanced 3.6 percent to 29.61 kroner after reporting fourth-quarter sales of 16.6 billion kroner ($2.7 billion). That beat the average analyst estimate of 15 billion kroner. The aluminum supplier also posted underlying earnings before interest and taxes of 483 million kroner.

Smurfit Kappa Group Plc jumped 5.1 percent to 19.02 euros. Chief Executive Officer Gary McGann said the packaging company will increase the price of its products this year as demand for some recycled items climbs. The maker of cardboard boxes said full-year earnings before interest, taxes, depreciation, amortization and some items rose 9 percent to 1.1 billion euros.

Faurecia (EO) SA surged 5.7 percent to 30.45 euros, its highest price since July 2011, as Europe’s biggest maker of car interiors said second-half operating profit rose 34 percent to 282 million euros.

Oil prices rose after a government report showed that crude stocks fell again Cushing terminal , registering with the second weekly decline in a row.

American Petroleum Institute data released on Tuesday showed that the oil terminal at Cushing fell last week by 2.49 million barrels. A week earlier , according to the Ministry of Energy , the terminal stocks fell 1.55 million

" Depletion of Cushing support prices for WTI, - said analyst Gene Makdzhillian Tradition Energy . - We see that oil imports to China set a new record . Rally in the oil market continues."

Meanwhile, adding that today's Energy Department data on changes in stocks in the U.S. this week , February 2-8, showed :

- Load refinery in the U.S. 87.1 % against 86.1 % a week earlier

- Distillate stocks in the U.S. -0,731,000 barrels to 113.063 million barrels

- Stocks of gasoline in the U.S. -1,853,000 barrels to 233.098 million barrels

- Crude oil inventories in the U.S. 3.267 million barrels to 361.352 million barrels

In addition, the course of trade affected OPEC monthly report , which pointed to the increase in the forecast for growth in oil demand this year by 50,000 barrels per day. Now forecast assumes growth rate at 1.1 million barrels per day to 90.98 million barrels. As reasons for the increase forecast in a cartel called the improved economic situation in the EU and USA. OPEC also added that in the future outlook may be raised again if the positive economic trends continue . Oil , which supplies OPEC accounts for about a third of global consumption . At the same time, OPEC warned that economic instability in developing countries, such as Argentina , may put into question the forecasts . In recent weeks, have expressed similar concerns , European and American multinationals . " Downside risks remain , they are associated with fiscal problems of some (developing) countries " , - the report says OPEC. In cartel refer to fiscal and monetary issues in Asia and Latin America.

Also today it was announced that the U.S. Energy Information Administration raised its forecast for growth in global oil consumption in 2014 and lowered the forecast production in non -OPEC countries . In the EIA monthly report raised growth forecast consumption by 50 thousand barrels per day to 1.26 million barrels. Management also reduced production forecast non-OPEC countries by 110 thousand barrels per day to 55.96 million this year and 90 thousand barrels per day to 57.46 million in 2015. In addition , EIA has lowered forecasts of production in the U.S. is 100 thousand barrels per day in this and next year to 8.4 and 9.2 million, respectively.

March futures price for U.S. light crude oil WTI (Light Sweet Crude Oil) rose to $ 100.82 per barrel on the New York Mercantile Exchange (NYMEX).

March futures price for North Sea Brent crude oil mixture rose 23 cents to $ 108.96 a barrel on the London exchange ICE Futures Europe.

Gold prices rose today , reaching a three-month high at the same time as technical factors outweighed the positive growth of investor appetite for other more risky assets , following comments by the new head of the U.S. Federal Reserve over the economic outlook .

Recall that in his first public appearance since taking office Fed chief Janet Yellen said the central bank will consider more indicators than the unemployment rate in the evaluation of the U.S. labor market , while expanding the scope of the "future leadership" on monetary policy.

"At the moment , it seems that there are some technical momentum and the price of gold may approach to the level of about $ 1,300 per ounce, which just goes moving average for 200 days ," said Credit Suisse analyst Karim Sheriff . "Nevertheless , it is expected that in the near future prices will fall again , as there is no real reason for investors to hold gold . The dollar will strengthen , the yield will show a moderate increase , and assets such as stocks, should continue to grow , after a significant correction earlier in the year . " We add that the price of gold has increased by about 7 percent since the beginning of the year , based on concerns about the emerging markets and economic growth in China.

One of the reports presented today showed that the assets of the world's largest holder of gold investment institutions ETFs SPDR Gold Trust rose yesterday by 1.80 tons - to the level of 798.85 tons. We add that the fund, which lost about 500 tons in 2013, did not record any change in three weeks.

Meanwhile, analysts said that physical buying from China ( the world's leading consumer of gold) , where demand was strong due to the Lunar New Year , may be reduced after the recent price rally .

The cost of the April gold futures on the COMEX today rose to $ 1293.40 per ounce for ounce.

U.S. stock-index futures were little changed, after the Standard & Poor’s 500 Index posted its biggest four-day jump in more than a year, amid data showing China’s exports climbed.

Global markets:

Nikkei 14,800.06 +81.72 +0.56%

Hang Seng 22,285.79 +322.81 +1.47%

Shanghai Composite 2,109.96 +6.28 +0.30%

FTSE 6,682.53 +9.87 +0.15%

CAC 4,306.63 +23.31 +0.54%

DAX 9,551 +72.23 +0.76%

Crude oil $101.10 (+1.16%)

Gold $1291.70 (+0.15%).

USD/JPY Y101.90, Y102.00, Y102.20/25/30, Y102.50, Y102.80, Y103.00, Y104.00

EUR/JPY Y141.00

EUR/USD $1.3500, $1.3550, $1.3650

GBP/USD $1.6200, $1.6400, $1.6425

EUR/GBP stg0.8200, stg0.8445

AUD/USD $0.8900, $0.8985, $0.9000, $0.9050

AUD/JPY Y91.75

NZD/USD $0.8150, $0.8350

USD/CAD C$1.0900, C$1.0915, C$1.0930, C$1.0950, C$1.1000, C$1.1030, C$1.1100

08:15 Switzerland Consumer Price Index (MoM) January -0.2% -0.2% -0.3%

08:15 Switzerland Consumer Price Index (YoY) January +0.1% +0.1% +0.1%

10:00 Eurozone Industrial production, (MoM) December +1.6% Revised From +1.8% -0.2% -0.7%

10:00 Eurozone Industrial Production (YoY) December +2.8% Revised From +3.0% +1.8% +0.5%

10:30 United Kingdom Bank of England Quarterly Inflation Report Quarter I

10:30 United Kingdom BOE Gov Mark Carney Speaks

Тhe euro fell sharply against major currencies on the comments of the ECB representative Coeur introducing negative rates. ECB Coeur , said today that the Central Bank is "very seriously" considering the introduction of negative rates. His comments collapses the euro, which has lost more than 50 pips . against the dollar in a matter of minutes .

Previously, the pressure on the single currency had a report on industrial production in the eurozone. As shown by recent data on Wednesday statistical office Eurostat, industrial production in the euro area grew considerably slower pace in December , the growth rate fell short of economists' expectations .

Industrial production growth fell to 0.5 percent in December from a revised down 2.8 percent in the previous month . Economists forecast that growth will weaken to 1.8 percent from November 3 percent initially announced .

Production of energy fell by 1.9 percent compared to December 2012 . Consumer non-durable goods and durable consumer goods fell by 0.9 percent and 1.2 percent respectively. Meanwhile, the production of intermediate goods increased by 3.6 percent .

Among the EU Member States the largest increase was registered in Portugal , Romania , the Czech Republic and Slovenia. The largest decrease was recorded in Malta, Ireland, Estonia and Finland.

On a monthly measurement of industrial production fell by 0.7 percent in late 2013 , after a gain of 1.6 percent in November , which was revised downward from 1.8 percent . Production is projected should have been reduced by 0.2 percent.

The British pound appreciated sharply against the U.S. dollar on a background of the quarterly report of the Bank of England and the speech of the Central Bank of Carney . According to the Bank of England inflation report , published today , the Central Bank is going to keep rates at a record - low of 0.5 % , at least for another year, even if the unemployment rate / p fall to 7% threshold that, according to expectations occur in Q1 2014 . Bank of England pointed out that the British economy will grow even before the Bank to raise rates . But it is worth noting that the increase will be gradual and not to such a high level , which was celebrated before the crisis.

"The consequences of the financial crisis and the availability of economic obstacles indicate that some time rates should be kept at a low level , - the report says . - Even when the economy returns to a normal level of production capacity , and inflation closer to the target level , the bank rate will be significantly lower than 5 % ( level set before the crisis ) . "

MPC predicts that in the last quarter of 2013 Britain's GDP to grow by 0.9 % against the previous estimate of 0.7 %. As for the remainder of 2014 , the Central Bank expects to rise by 3.4 % versus 2.8 % November forecast .

As for inflation , according to expectations, in the 2nd quarter of 2015 its growth will slow to 1.7% , and then accelerate again in 2016 and will reach 1.9%.

Bank of England Governor Mark Carney , speaking at a press conference after the release of the report , noted that Britain's economic recovery is underway, but it "still is neither stable nor balanced ." He defended the policy of transparency , noting that it has helped reduce the rate hike expectations .

Carney also commented on the rapid drop in rates b / d to reach 7% , explaining the reduction of the total number of those citizens who do not have full employment. At the same time , he pointed out that the number of citizens with underemployment rose to historic highs .

Thus, under the policy of transparency , the Bank of England will consider a number of indicators , such as an index of manufacturing activity , working hours , labor productivity and wages . Size asset purchase program will continue to be £ 375 billion , at least until the first rate increase.

EUR / USD: during the European session, the pair fell to $ 1.3563

GBP / USD: during the European session, the pair rose to $ 1.6556

USD / JPY: during the European session, the pair dropped to Y102.21

At 18:00 GMT the U.S. is deploying 10 - year bonds . At 19:00 GMT the United States will submit a monthly report on the budget . At 21:30 GMT New Zealand will release the index of business activity in the manufacturing sector of Business NZ in January .

EUR/USD

Offers $1.3735/50, $1.3690/700, $1.3680/85

Bids $1.3600, $1.3560/50

GBP/USD

Offers $1.6600/10, $1.6545/55

Bids $1.6505/495, $1.6480, $1.6465/60

AUD/USD

Offers  $0.9150, $0.9100

Bids $0.9025/20, $0.9000, $0.8960/50

EUR/GBP

Offers  stg0.8300/05

Bids stg0.8225/20, stg0.8165/60, stg0.8150

EUR/JPY

Offers Y141.00, Y140.50, Y140.20

Bids Y139.55/50, Y139.00, Y138.50

USD/JPY

Offers  Y103.50, Y102.90/00, Y102.65/70

Bids Y102.20, Y102.00, Y101.55/50

European stocks rose for a sixth day, their longest winning streak this year, as companies from ING Groep NV to Societe Generale SA posted profit that beat estimates, and a report showed Chinese exports surged last month. U.S. index futures and Asian shares also advanced.

The Stoxx Europe 600 Index advanced 0.3 percent to 330.57 at 8:54 a.m. in London. The benchmark has risen 4.1 percent since Feb. 4 as investors assessed when the Federal Reserve will next slow its monthly bond-buying program. The gauge retreated 5.5 percent from its six-year high on Jan. 22 through Feb. 4 amid sell-off in emerging-market currencies.

In China, the General Administration of Customs said exports jumped 10.6 percent in January from a year earlier. That compared with the median projection of economists in a Bloomberg survey for a gain of 0.1 percent. Imports rose 10 percent, exceeding the 4 percent advance that economists had predicted.

In the U.K., the Bank of England publishes its quarterly economic outlook, with new forecasts for growth and inflation, at 10:30 a.m. in London. Data last month showed the U.K.’s jobless rate slid to 7.1 percent in the three months through November, nearing the 7 percent threshold at which Governor Mark Carney has said policy makers will consider increasing interest rates. Monetary Policy Committee members said last month they “saw no immediate need to raise bank rate even if the 7 percent unemployment threshold were to be reached in the near future.”

ING gained 3.1 percent to 10.48 euros. The Dutch lender posted fourth-quarter net income of 539 million euros ($735 million), exceeding the 254 million-euro average projection of analysts surveyed by Bloomberg News. Earnings at ING Bank more than tripled. Underlying net income rose 22 percent in 2013 to 3.26 billion euros, ING said.

Societe Generale added 3 percent to 45.59 euros. France’s second-largest bank posted fourth-quarter net income of 322 million euros as earnings climbed at its French and Russian consumer-lending units. Analysts on average had forecast 163 million euros of profit. The lender posted a loss of 471 million euros in the year-earlier period.

Heineken climbed 3.4 percent to 48.69 euros. The world’s third-biggest brewer said it expects volumes will grow in Africa, the Middle East, Asia Pacific and Latin America this year. Net income before some items fell 4.6 percent to 1.59 billion euros in 2013, according to a statement.

FTSE 100 6,687.38 +14.72 +0.22%

CAC 40 4,305.98 +22.66 +0.53%

DAX 9,564.08 +85.31 +0.90%

USD/JPY Y101.90, Y102.00, Y102.20/25/30, Y102.50, Y102.80, Y103.00, Y104.00

EUR/JPY Y141.00

EUR/USD $1.3500, $1.3550, $1.3650

GBP/USD $1.6200, $1.6400, $1.6425

EUR/GBP stg0.8200, stg0.8445

AUD/USD $0.8900, $0.8985, $0.9000, $0.9050

AUD/JPY Y91.75

NZD/USD $0.8150, $0.8350

USD/CAD C$1.0900, C$1.0915, C$1.0930, C$1.0950, C$1.1000, C$1.1030, C$1.1100

Asian stocks rose, with the regional benchmark index extending its longest stretch of gains this year, as data from China and comments by Federal Reserve Chairman Janet Yellen boosted optimism about the world’s two biggest economies.

Nikkei 225 14,800.06 +81.72 +0.56%

S&P/ASX 200 5,310.05 +55.56 +1.06%

Shanghai Composite 2,104.77 +1.10 +0.05%

Canon Inc., the world’s biggest camera maker, rose 1.2 percent in Tokyo.

Agricultural Bank of China Ltd. climbed 2.9 percent, pacing gains among the nation’s lenders in Hong Kong as data showed growth in China’s imports and exports last month exceeded economist forecasts.

Toyota Motor Corp., the world’s largest carmaker, pared its advance to 0.3 percent after announcing saying it will recall more than half of the Prius vehicles it’s ever sold to update software.

02:00 China Trade Balance, bln January 25.6 24.2 31.9

The dollar held declines against most of its major counterparts before a report tomorrow forecast to show U.S. retail sales stalled last month. U.S. retail sales stagnated in January after a 0.2 percent gain the month before, according to the median estimate of economists surveyed by Bloomberg News before the U.S. Commerce Department reports the data tomorrow. The Labor Department said on Feb. 7 hiring in the U.S. rose by 113,000 in January, fewer than the 180,000 gain forecast by economists.

The Bloomberg Dollar Spot Index was near the lowest in almost a month after Federal Reserve Chairman Janet Yellen said yesterday the recovery in the U.S. labor market is “far from complete.” Yellen told the House Financial Services Committee yesterday that policy makers would continue to scale back stimulus in “measured steps,” and repeated the Fed’s statement that asset purchases aren’t on a “pre-set course.”

Australia’s currency rose to a four-week high after China trade surged. In China, imports climbed 10 percent last month from a year earlier, topping every estimate in a Bloomberg economist poll. Exports gained 10.6 percent, also exceeding all forecasts. The data comes after the Lunar New Year holiday between Jan. 31 and Feb. 6.

Bank of Japan Governor Haruhiko Kuroda told parliament today that markets have maintained trust in Japan’s finances, and fiscal consolidation is necessary to keep it. Policy board member Takahide Kiuchi said in an interview with Japan’s Nikkei newspaper that additional monetary easing to offset the effect of a sales tax increase in April may have negative side effects.

European Central Bank President Mario Draghi will deliver the keynote address at a conference in Brussels today.

EUR / USD: during the Asian session the pair fell to $ 1.3625

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6440-55

USD / JPY: on Asian session the pair fell to Y102.40

There is a full calendar again Wednesday, although again data is largely second tier and appearances by central bankers will again dominate. The European

calendar gets underway at 0745GMT, with the release of the French December current account data. At 0815GMT, Swiss January CPI data will cross the wires. ECB Governing Council member Ewald Nowotny will take part in the ECB/BNB Conference, in Brussels. Luc Coene speaks at the same event from

0900GMT. EMU December industrial output data will be released at 1000GMT. The German government issues its annual economic report, including updated forecasts, in Berlin at 1100GMT. At the same time, ECB Executive Board member Peter Praet will speak on "Banking faces the 21st century", in Madrid. Appearances by central bank heads continues at 1530GMT when ECB President Mario Draghi delivers a speech at ECB/BNB conference, in Brussels. At

1830GMT, ECB Executive Board member Benoit Coeure will give a keynote speech at reception for the German-Asian business circle, in Bad Homburg, Germany. Sovereign issuance will see Germany sell a new 2-year benchmark issue -- Mar 2016 Schatz for up to E5bln and Italy issue a new 12-month BOT, maturing Feb 13, 2015 for E8bln. The main UK event comes at 1030GMT, when the Bank of England releases the February Quarterly Inflation Report and Governor Mark Carney faces the press.

The US calendar gets underway at 1200GMT, with the release of the MBA Mortgage Index for the February 7 week. At 1345GMT, St. Louis Federal Reserve Bank President James Bullard will sit on a panel discussing the economic outlook, in New York. The EIA Crude Oil Stocks data for the Feb 8 week will

cross the wires at 1530GMT. Late US data sees the release of the January Treasury Statement at 1800GMT.