Asian stocks snapped a four-day decline as crude eased below $100 as concerns over recovery eased with the MSCI Asia Pacific index rising 1.1%, Nikkei climbed 0.7%, Hang Seng up 2% while the Shanghai Composite remained unchanged. Asian equities are rebounding from a two-month low after the US, Saudi Arabia and the IEA said that they can compensate for any oil disruptions caused by the current turmoil which added some relief in the markets and as US Data may show GDP and inflation levels improved, boosting investor confidence in the global recovery. The EURUSD climbed to a three-week high of 1.3838 on speculation of the ECB contemplating raising interest rates to fight rising inflation levels and as today's inflation report could show prices rose the most in two years, NZDUSD advanced to 0.7528 as S&P said that the earthquake in NZ will have no immediate effect on the credit rating, USDJPY traded at 81.80, USDCHF moved down to a record low of 0.9236 as the Yen and Franc have remained strong on escalating tensions in the Middle East as investors resorted to safe currencies.
Japan's consumer prices excluding fresh food declined 0.2% (exp. -0.3%) in January from a year earlier, showing deflation eased for a fourth month while yesterday in the U.S., jobless benefits fell last week by 22,000 to 391,000 as consumer confidence climbed to -39.2 (prev. -43.4). Durable goods orders climbed 2.7% as demand for aircraft rebounded but the figures except transportation unexpectedly fell. The economic data from the US did not help the Dollar from weakening as new home sales too fell unexpectedly by 13% to 284,000 units.
We have German inflation report today along with EU money supply, UK GDP figures, exports, imports, and important figures would be US GDP data along with consumer confidence and Fed's Yellen and Lacker speaking along with ECB's Constancio.