The US$ is a little lower today after US Treasury yields slipped back, with the 10s, instead of attempting an assault on 3.00%, actually declined, to currently sit at 2.92%. The Yen and the Chf were in obvious demand on safe-haven grounds and have only recovered mildly into the end of the session. Stocks have had a choppy ride and have only bounced mildly after making a 12-day low. Overall, stocks now look indecisive and a neutral stance seems wise although I do not think we are finished on the downside yet.
In terms of data, the focus was on the German IFO Business Climate/Expectations, which came in slightly below consensus: (Expectations 105.4 vs 107.9 vs 108.3; previous revised down from 108.4. Current assessment,126.3 vs 127.0 exp, vs 127.7 previous). Also released was the UK Q4 Provisional GDP (0.4% vs 0.5% exp).
Elsewhere, Gold is firmer, in line with the softer dollar, while WTI settled higher after data showed US domestic oil supplies fell for the first time in four weeks as exports surged to record highs. Inventories of US crude fell by 1.616 million barrels for the week ended Feb. 9, confounding expectations of a of 2.355 million barrels.
Friday will begin with the NZ Q4 Retail Sales (exp 1.4%) and the Japan January CPI (exp 1.3%yy). This will be followed up in Europe by the German Q4 GDP (exp 0.6%qq, 2.3%yy) and the EU CPI (Jan), which will be the main feature of the day (exp -0.9%mm, 1.3%yy, Core; -1.5%mm, +1%yy). That aside there will be an EU council meeting, which may see some headlines that create a few waves but there is nothing at all from the US in what may end up being a fairly quiet end to the week
|INDICES / COMMODITIES|
|OIL (WTI): 62.68|