Stock indices closed lower as Eurozone's inflation declines. The inflation fell to an annual rate of -0.6% in January from -0.2% in December. Analysts had expected a 0.5% drop.

Eurozone's unemployment rate fell to 11.4% in December from 11.5% in November. Analysts had expected the unemployment rate to remain unchanged at 11.5%.

German adjusted retail sales climbed 0.2% in December, after a 0.9% gain in November. November's figure was revised down from a 1.0% increase.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,749.4 -61.20 -0.90%

DAX 10,694.32 -43.55 -0.41%

CAC 40 4,604.25 -27.18 -0.59%

Oil has risen moderately today, which was caused by concern over the fighting in Iraq, as well as the publication of US GDP data. Nevertheless, at the end of the month, prices fell again, fixing at this seventh consecutive monthly fall, which was not observed since 2009. Since early January Brent fell by 13%, WTI - by 15%. (the longest series of all time).

As shown by preliminary data from the US, in the 4th quarter. 2014 real GDP increased by 2.6%, not 3.3% Forecasts and slow compared with the result of the third quarter. 5.0%. A positive contribution to overall GDP made component of personal consumption, which increased by 4.3%. Favorable results showed private investment in inventories and exports. On the other hand, the pressure on the index had imports, reducing government spending and fixed investments by non-residents. GDP price index decreased by 0.3% versus + 1.4% in the previous quarter.

Oil prices are also rising on news from China: Beijing ordered the refineries of the country to keep a 15-day supply of oil. Although these regulations will come into force gradually over one to three years, many refineries will take advantage of low prices for stockpiling.

Otherwise, oil demand will remain weak, while the producers are trying to adapt to low prices, analysts predict. "Voluntary reduction in supplies to the markets of raw materials is increasingly unlikely. The fall in exchange rates and the cost of energy will allow many energy producers survive the decline in consumption," - the report says ANZ.

Investors will also evaluate new forecasts from Barclays Capital. Today, experts Barclays Capital lowered its forecast average oil price in 2015 from $ 72 to $ 44 per barrel. Moreover, now Barclays Capital analysts expect that in the II quarter of this year, oil quotes could fall to $ 40 per barrel. Recovery of oil prices, experts expect no earlier than 2016, when the average annual oil will cost about $ 60 per barrel.

March futures price for US light crude oil WTI (Light Sweet Crude Oil) rose to 45.12 dollars per barrel on the New York Mercantile Exchange.

March futures price for North Sea petroleum mix of Brent rose $ 0.41 to $ 49.47 a barrel on the London Stock Exchange ICE Futures Europe.

The U.S. dollar traded mixed against the most major currencies after the mostly weak-than-expected U.S. economic data. The U.S. preliminary gross domestic product increased at an annual rate of 2.6% in the fourth quarter, missing expectations for a 3.3% gain, after a 5.0% rise in the third quarter.

Consumers spending strengthened in the fourth quarter, but businesses investment, trade and government spending weakened.

For 2014 as a whole, GDP expanded 2.4% compared to 2.2% in 2013.

The personal consumption expenditures (PCE) price index declined at an annual rate of 0.5% in the fourth quarter. That was the weakest reading since the first quarter of 2009.

The personal consumption expenditures (PCE) price index excluding food and energy increased 1.1%.

The Chicago purchasing managers' index increased from 59.4 in January to 58.8 in December, exceeding expectations for a fall to 58.1. December's figure was revised up from 58.3.

The final University of Michigan's consumer sentiment index was 98.1 in January, in line with expectations, down from the preliminary estimate of 98.2.

The euro traded lower against the U.S. dollar. The inflation declined to an annual rate of -0.6% in January from -0.2% in December. Analysts had expected a 0.5% drop.

Eurozone's unemployment rate fell to 11.4% in December from 11.5% in November. Analysts had expected the unemployment rate to remain unchanged at 11.5%.

German adjusted retail sales climbed 0.2% in December, after a 0.9% gain in November. November's figure was revised down from a 1.0% increase.

The British pound fell against the U.S. dollar. Net lending to individuals in the U.K. increased by £2.2 billion in December, after a £3.3 billion gain in November.

The number of mortgages approvals in the U.K. increased by 60,280 in December, after a gain by 58,960 in November.

The Canadian dollar traded lower against the U.S. dollar after the weak Canadian gross domestic product (GDP). Canada's GDP decreased 0.2% in November, after a 0.3% fall in October.

The decline was driven by lower oil prices and unexpected weakness in manufacturing and mining.

The Swiss franc traded higher against the U.S. dollar. The KOF leading indicator decreased to 97.0 in January from 98.8 in December, missing expectations for a decrease to 97.8. December's figure was revised up from 98.7.

The New Zealand dollar traded mixed against the U.S. dollar. In the overnight trading session, the kiwi traded higher against the greenback in the absence of any major economic reports from New Zealand.

The Australian dollar traded mixed against the U.S. dollar. In the overnight trading session, the Aussie traded mixed against the greenback after the weak economic data from Australia. Australia's producer price index (PPI) rose 0.1% in the fourth quarter, after a 0.2% increase in the third quarter.

On a yearly basis, Australia's PPI increased 1.1% in the fourth quarter, after a 1.2% gain in the third quarter.

Private sector credit in Australia climbed 0.5% in December, after a 0.5% increase in October.

The Japanese yen traded higher against the U.S. dollar. In the overnight trading session, the yen increased against the greenback after the mixed economic data from Japan. Japan's national consumer price index (CPI) rose 2.4% in December, after a 2.4 increase in November.

Japan's national CPI excluding fresh food increased 2.5% in December, missing expectations for a a 2.6% gain, after a 2.7% rise in November.

Tokyo's CPI climbed 2.13 in January, after a 2.1% rise in December.

Tokyo's CPI excluding fresh food gained 2.2% in January, in line with expectations, after a 2.3% increase in December.

Household spending in Japan dropped at annual rate of 3.4% in December, missing forecasts of a 2.5% decrease, after a 2.5% fall in November.

Japan's unemployment rate decreased to 3.4% in December from 3.5% in November. Analysts had expected the unemployment rate to remain unchanged.

Preliminary industrial production in Japan climbed 1.0% in December, missing expectations for a 1.3% increase, after a 0.6% decline in November.

Gold prices rose markedly, breaking the $ 1270 level, which is associated with the publication of data on the growth of the US economy, which were worse than expected.

As previously reported, the gross domestic product grew at an annual rate in the fourth quarter by 2.6%, the Commerce Department reported Friday. The economy grew by 5% in the third quarter and 4.6% in the second quarter after a reduction in the first three months of the year. Economists had expected growth in the fourth quarter by 3.3%. The report reflected the uneven economic recovery. Consumers - to support the growing number of jobs and lower prices for gasoline - increased spending at the end of 2014 at the fastest pace in almost nine years. But business investment has slowed to the lowest rates, government spending fell, and export growth declined. For 2014 as a whole, GDP increased by 2.4%, only slightly better than the average growth of 2010-2013, reflecting a moderate rate compared with previous periods of growth of 2.2%. In the 1990s, the economy grew by an average of 3.4% per year.

As investors react to the words of the chairman of the US Federal Reserve Janet Yellen that the central bank will be patient in the issue of rising interest rates. "Janet Yellen said that it will soon raise interest rates is expected. Gold and silver rebounded slightly in price," - said Nur al-Hammour, expert ADS Securities.

At the same time, some experts remain negative view of long-term prospects of gold. "We are again more pessimistic about short-term prospects of gold. With regard to the longer-term prospects for gold and silver we maintain a negative outlook due to consistent economic recovery," - says Carsten Menke, an analyst at Julius Baer.

Support prices also have expectations of the launch of the ECB QE. "The most important factor for the precious metals in the coming year - a significant increase in liquidity due to the ECB, and the US economy will have all the time to improve performance to attract investors' funds. The question is whether the US is able to maintain the current growth rate, given the slow growth of wages," - said analyst Australia and New Zealand Banking Group Victor Tyanpiriya. According to him, by the end of the year gold would cost $ 1,280 per ounce.

The cost of the February gold futures on the COMEX today rose to 1272.20 dollars per ounce.

The U.S. Commerce Department released gross domestic product data on Friday. The U.S. preliminary gross domestic product increased at an annual rate of 2.6% in the fourth quarter, missing expectations for a 3.3% gain, after a 5.0% rise in the third quarter.

Consumers spending strengthened in the fourth quarter, but businesses investment, trade and government spending weakened.

Business investment rose 1.9% in the fourth quarter, exports were up 2.8%, while government spending decreased 2.2%.

Consumer spending grew 4.3% in the fourth quarter, the fastest since early 2006. Consumer spending benefited from a job growth and falling oil prices.

For 2014 as a whole, GDP expanded 2.4% compared to 2.2% in 2013.

The personal consumption expenditures (PCE) price index declined at an annual rate of 0.5% in the fourth quarter. That was the weakest reading since the first quarter of 2009.

The personal consumption expenditures (PCE) price index excluding food and energy increased 1.1%.

The personal consumption expenditures (PCE) price index is the Fed's preferred measure for inflation.

Dow 17,357.76 -59.09 -0.34%

Nasdaq 4,690.37 +6.96 +0.15%

S&P 500 2,013.20 -8.05 -0.40%

10 Year Yield 1.67% -0.08 --

Gold $1,261.80 +7.20 +0.57%

Oil $44.52 -0.01 -0.02%

U.S. stocks futures were down sharply, after the government data showed that the economy grew at a slower pace than anticipated in the fourth quarter.

Global markets:

Nikkei 17,674.39 +68.17 +0.39%

Hang Seng 24,507.05 -88.80 -0.36%

Shanghai Composite 3,211.67 -50.64 -1.55%

FTSE 6,777.6 -33.00 -0.48%

CAC 4,600.37 -31.06 -0.67%

DAX 10,673.72 -64.15 -0.60%

Crude oil $44.66 (+0.29%)

Gold $1264.00 (+0.75%)

Statistics Canada released GDP (gross domestic product) data on Friday. Canada's GDP decreased 0.2% in November, after a 0.3% fall in October.

The decline was driven by lower oil prices and unexpected weakness in manufacturing and mining.

Manufacturing output fell by 1.9% in November, the deepest fall since January 2009, mining declined by 2.5%, while oil and gas extraction was down by 0.7%.

(company / ticker / price / change, % / volume)

Upgrades:

Downgrades:

Visa (V) downgraded to Mkt Perform from Outperform at FBR Capital, target $260

Other:

Google (GOOG) target lowered from $725 to $650 at RBC Capital Mkts and from $671 to $632 at FBR Capital

Amazon.com (AMZN) target raised from $400 to $420 at Piper Jaffray

Chevron (CVX) earned $1.85 per share in the fourth quarter, beating analysts' estimate of $1.65. Revenue in the fourth quarter decreased 17.9% year-over-year to $46.09 billion, but exceeding analysts' estimate of $44.89 billion.

The company has announced that it will cut its capital expenditure by 13% in 2015.

Chevron (CVX) shares increased to $103.50 (+0.49%) prior to the opening bell.

Visa (V) earned $2.53 per share in the first fiscal quarter, beating analysts' estimate of $2.49. Revenue in the first fiscal quarter increased 7.2% year-over-year to $3.38 billion, exceeding analysts' estimate of $3.34 billion.

Visa (V) shares increased to $256.80 (+3.55%) prior to the opening bell.

Amazon.com (AMNZ) earned $0.45 per share in the fourth quarter, beating analysts' estimate of $0.16. Revenue in the fourth quarter increased 14.6% year-over-year to $29.33 billion, missing analysts' estimate of $29.63 billion.

The company released its forecasts for the first quarter 2015. Revenue is expected to be $20.9-$22.9 billion (analysts' estimate: $22.96 billion).

Amazon.com (AMNZ) shares increased to $327.50 (+5.04%) prior to the opening bell.

EUR/USD: $1.1200(E291mn), $1.1300(E427mn), $1.1400(E565mn), $1.1450-60(E662mn)

USD/JPY: Y115.50($1.17bn), Y117.75($680mn), Y118.00($698mn), Y118.50($513mn), Y119.00($1.6bn)

EUR/JPY: Y134.50(E252mn), Y138.00(E460mn)

GBP/USD: $1.5350(stg340mn)

AUD/USD: $0.7750 (A$619mn), $0.7850(A$527mn), $0.7900(A$303mn)

NZD/USD: $0.7200(NZ$634mn), $0.7300(NZ$624mn), $0.7400(NZ$289mn)

USD/CAD: C$1.2500($280mn)

Google (GOOG) earned $6.88 per share in the fourth quarter, missing analysts' estimate of $7.14. Revenue in the fourth quarter increased 15.2% year-over-year to $18.10 billion, missing analysts' estimate of $18.47 billion.

Google (GOOG) shares increased to $517.00 (+1.24%) prior to the opening bell.

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:05 United Kingdom Gfk Consumer Confidence January -4 -2 +1

00:30 Australia Producer price index, q / q Quarter IV +0.2% +0.1%

00:30 Australia Producer price index, y/y Quarter IV +1.2% +1.1%

00:30 Australia Private Sector Credit, m/m December +0.5% +0.5%

00:30 Australia Private Sector Credit, y/y December +5.9% +5.9%

05:00 Japan Housing Starts, y/y December -14.3% -14.7%

07:00 Germany Retail sales, real adjusted December +0.9% +0.2%

07:00 Germany Retail sales, real unadjusted, y/y December -0.8% +4.0%

07:45 France Consumer spending December +0.4% +1.5%

07:45 France Consumer spending, y/y December -1.1% +0.5%

08:00 Switzerland KOF Leading Indicator January 98.8 Revised From 98.7 97.8 97.0

09:30 United Kingdom Net Lending to Individuals, bln December 3.3 2.2

09:30 United Kingdom Mortgage Approvals December 59 60

10:00 Eurozone Unemployment Rate December 11.5% 11.5% 11.4%

10:00 Eurozone Harmonized CPI, Y/Y (Preliminary) January -0.2% -0.5% -0.6%

The U.S. dollar traded mixed to higher against the most major currencies ahead of the U.S. economic data. The U.S. preliminary gross domestic product is expected to rise at an annual rate of 3.3% in the fourth quarter, after a 5.0% gain in the third quarter.

The Chicago purchasing managers' index is expected to decline to 58.1 in January from 58.3 in December.

The final Reuters/Michigan Consumer Sentiment Index is expected to decline to 98.1 in January.

The euro traded lower against the U.S. dollar after the mixed economic data from Eurozone. The inflation declined to an annual rate of -0.6% in January from -0.2% in December. Analysts had expected a 0.5% drop.

Eurozone's unemployment rate fell to 11.4% in December from 11.5% in November. Analysts had expected the unemployment rate to remain unchanged at 11.5%.

German adjusted retail sales climbed 0.2% in December, after a 0.9% gain in November. November's figure was revised down from a 1.0% increase.

The British pound traded lower against the U.S. dollar after the economic data from the U.K. Net lending to individuals in the U.K. increased by £2.2 billion in December, after a £3.3 billion gain in November.

The number of mortgages approvals in the U.K. increased by 60,280 in December, after a gain by 58,960 in November.

The Canadian dollar traded lower against the U.S. dollar ahead of Canadian gross domestic product (GDP). Canada's GDP rose 0.3% in November.

The Swiss franc traded mixed against the U.S. dollar after the weaker-than-expected KOF leading indicator. The KOF leading indicator decreased to 97.0 in January from 98.8 in December, missing expectations for a decrease to 97.8. December's figure was revised up from 98.7.

EUR/USD: the currency pair fell to $1.1291

GBP/USD: the currency pair declined to $1.5042

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

13:30 Canada GDP (m/m) November +0.3%

13:30 U.S. Employment Cost Index Quarter IV +0.7%

13:30 U.S. PCE price index, q/q Quarter IV +3.2%

13:30 U.S. PCE price index ex food, energy, q/q Quarter IV +1.4%

13:30 U.S. GDP, q/q (Preliminary) Quarter IV +5.0% +3.3%

14:45 U.S. Chicago Purchasing Managers' Index January 58.3 58.1

15:00 U.S. Reuters/Michigan Consumer Sentiment Index (Finally) January 98.2 98.1

EUR/USD

Offers $1.1500, $1.1450/60, $1.1400, $1.1380/85, $1.1370

Bids $1.1305/295, $1.1250, $1.1220

GBP/USD

Offers $1.5145/50, $1.5120/25, $1.5100

Bids $1.5000

AUD/USD

Offers $0.7900, $0.7850, $0.7800, $0.7775/80

Bids $0.7700, $0.7650, $0.7600

EUR/JPY

Offers Y135.00, Y134.45/50, Y133.80/00

Bids Y132.55/50, Y132.10/00

USD/JPY

Offers Y119.00, Y118.50, Y118.00

Bids Y117.50, Y117.10/00, Y116.95/85, Y116.50

EUR/GBP

Offers stg0.7600

Bids

European indices reverse early gains ahead of U.S. data. Earlier today German Retail Sales for December rose less at a +0.2% pace compared to +1.0% in the previous month. Real unadjusted Retail Sales jumped +4.0%.

Consumer Spending in France rose by +1.5% in December compared to +0.4% in November.

Eurozone's Unemployment rate for December declined with a reading of 11.4%. Economists forecasted a reading of 11.5% in line with previous month's data.

The Eurozone's Harmonized Consumer Price Index for January extended its slide by -0.6%, matching the biggest decline in the history of the Eurozone, compared to a reading of -0.2% in the previous month. A reading below forecasts of -0.5%. The data shows the importance of the challenges the ECB is facing I order to avoid deflation and bring back the Eurozone to the targeted inflation rate of 2%.

Later in the day a set of U.S. data including the highly anticipated GDP for the fourth quarter, the Chicago Purchasing Manager's Index and the Reuters/Michigan Consumer Sentiment will be in the focus.

The commodity heavy FTSE 100 index is currently trading -0.35% quoted at 6,787.02 points. Germany's DAX 30 lost -0.01% trading at 10,736.39, almost flat reversing early gains, being quoted below its all-time high at 10,810.57 hit on Tuesday. France's CAC 40 is currently trading at 4,621.25 points, -0.22%.

Brent crude and West Texas Intermediate are trading higher today. Brent Crude added +0.96%, currently trading at USD49.60 a barrel, approaching the important USD50 level. On January 13th Crude hit a low at USD45.19. West Texas Intermediate gained +1.06% currently quoted at USD45.00. Yesterday the cost of WTI crude oil continued to fall reaching the lowest level in six years, due to an increase in US oil inventories. Meanwhile, the price of Brent crude oil have not changed.

The course of trade is also affected by expectations the publication of preliminary data on US economic growth in the fourth quarter. Analysts forecast the US economy expanding by 3.3%. Upbeat employment data fro the U.S. yesterday supported the oil price.

Oil prices fell by nearly 60 percent over the past six months, and both key brands of oil are currently trading below $ 50 a barrel as the worldwide supply exceeds demand in a period of low global economic growth and the OPEC refusing to cut output rates to stabilize prices. Smaller OPEC members want to cut production but the organisation, responsible for 40% of worldwide production focuses on its fight for market share.

Gold is trading slightly higher regaining some ground today after hitting 2-week lows yesterday on better-than expected U.S. Unemployment data with a decrease in unemployed people of 43,000 and the FED's FOMC statement and the outlook on a rate hike.

Later in the day a set of U.S. data including the GDP for the fourth quarter, the Chicago Purchasing Manager's Index and the Reuters/Michigan Consumer Sentiment will be in the focus.

Inflation in the Eurozone extended its drop making the precious metal as inflation hedge less attractive.

Higher interest rates make gold less attractive as the metal is not yield-bearing. A stronger greenback also weighed on the dollar-denominated precious metal as it makes it more expensive for holders of other currencies.

The precious metal is currently quoted at USD1,263.10, +0,55% a troy ounce. On Thursday last week gold reached a five-month high at USD1,307.40.

Eurozone's Unemployment rate for December declined with a reading of 11.4%. Economists forecasted a reading of 11.5% in line with previous month's data.

The Eurozone's Harmonized Consumer Price Index for January extended its slide by -0.6%, matching the biggest decline in the history of the Eurozone, compared to a reading of -0.2% in the previous month. A reading below forecasts of -0.5%. The data shows the importance of the challenges the ECB is facing I order to avoid deflation and bring back the Eurozone to the targeted inflation rate of 2%.

EUR/USD: $1.1200(E291mn), $1.1300(E427mn), $1.1400(E565mn), $1.1450-60(E662mn)

USD/JPY: Y115.50($1.17bn), Y117.75($680mn), Y118.00($698mn), Y118.50($513mn), Y119.00($1.6bn)

EUR/JPY: Y134.50(E252mn), Y138.00(E460mn)

GBP/USD: $1.5350(stg340mn)

AUD/USD: $0.7750 (A$619mn), $0.7850(A$527mn), $0.7900(A$303mn)

NZD/USD: $0.7200(NZ$634mn), $0.7300(NZ$624mn), $0.7400(NZ$289mn)

USD/CAD: C$1.2500($280mn)

BLOOMBERG

VIX Calls Most Shunned Since 2012 as Volatility Ignored

(Bloomberg) -- Even with stock swings nearly doubling since 2014 and U.S. equities poised for their worst month in a year, traders aren't signaling too much concern.

Investors own about 2.4 million options betting on a rise in the Chicago Board Options Exchange Volatility Index, compared to about 1.6 million contracts wagering on a drop. That's around the lowest ratio of calls to puts in more than two years, data compiled by Bloomberg show, indicating traders don't anticipate an increase in market turbulence anytime soon.

Traders have abandoned options betting on jumps in the VIX since November, even as the gauge spiked at least 18 percent three times this month. Stocks' tendency to power past declines at the end of 2014 encouraged traders to shed hedges and speculative bets in VIX options they weren't profiting from, according to Todd Salamone of Schaeffer's Investment Research Inc.

Source: http://www.bloomberg.com/news/articles/2015-01-30/vix-calls-most-shunned-since-2012-as-volatility-ignored

REUTERS

BOJ set to watch and wait as Abe team urges caution on fresh easing

(Reuters) - The Bank of Japan has put monetary policy on hold and found backing for its wait-and-see stance from advisors to Prime Minister Shinzo Abe, who worry more easing could send the yen to damagingly low levels, according to officials in the administration and central bank.

This newfound caution from some of the same Abe advisors who urged the BOJ to launch its massive stimulus in 2013, meansJapan is set to be an outlier at a time when central banks from Canada to the euro zone to Singapore have shocked markets by easing policy in recent days.

Concerns about the yen, along with a belief among central bank officials - including Governor Haruhiko Kuroda - that coming wage increases will support higher prices, suggest the BOJ could hold policy steady until October, months after many economists expect it to be eased.

Source: http://www.reuters.com/article/2015/01/30/us-japan-economy-boj-idUSKBN0L30AA20150130

REUTERS

Lower gas prices seen fueling U.S. consumer spending in fourth quarter

(Reuters) - The U.S. economy likely grew at a brisk clip in the fourth quarter as lower gasoline prices buoyed consumer spending, in a show of resilience despite a darkening global outlook.

Gross domestic product probably expanded at a 3 percent annual pace, according to a Reuters survey of economists. While that would be a step down from the third quarter's breakneck 5 percent rate, it would be the fifth quarter out of the last six that the economy has grown at or above a 3 percent pace.

"The consumer did the heavy lifting and I don't think there is any reason to expect that to change in the first half of this year because of the enormous tailwind from lower gasoline prices," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania.

Source: http://www.reuters.com/article/2015/01/30/us-usa-economy-idUSKBN0L30BC20150130

European indices rise in early trading amid earnings reports still being supported by the ECB's stimulus program.

German Retail Sales for December rose less at a +0.2% pace compared to +1.0% in the previous month. Consumer Spending in France rose by +1.5% in December compared to +0.4% in November.

Markets await data on Eurozone's Unemployment Rate and Harmonized CPI due at 10:00 GMT. Later in the day a set of U.S. data including the GDP for the fourth quarter, the Chicago Purchasing Manager's Index and the Reuters/Michigan Consumer Sentiment will be in the focus.

The commodity heavy FTSE 100 index is currently trading +0.03% quoted at 6,812.95 points. Germany's DAX 30 rose by +0.21% trading at 10,760.56. France's CAC 40 added +0.20%, currently trading at 4,640.72 points.

U.S. markets closed higher on Thursday on mixed U.S. data, reversing early losses in the late afternoon on rising oil-prices and a rally in Apple and Boeing shares lend further support. Initial jobless claims in the week ending January 24 in the U.S. fell by 43,000 to 265,000 from 308,000 in the previous week. Pending home sales in the U.S. declined 3.7% in December, missing expectations for a 0.6% increase, after a 0.6% gain in November. November's figure was revised down from a 0.8% rise. That was the biggest monthly decrease since December 2013. Today market participants await a set of U.S. data including the GDP for the fourth quarter, the Chicago Purchasing Manager's Index and the Reuters/Michigan Consumer Sentiment.

The DOW JONES index added +1.31%, closing at 17,416.85 points. The S&P 500 rose by +0.95% with a final quote of 2,021.25 points

Chinese stock markets traded lower on Friday. Yesterday Chinese regulators launched inspections into brokerages that allow margin trading as concerns rise that markets are becoming over-leveraged. Hong Kong's Hang Seng is trading -0.48% at 24,478.94 points. China's Shanghai Composite closed at 3,211.67 points -1.55%.

Japan's Nikkei posted gains on Friday on strong corporate results that buoyed sentiment, closing +0.39% with a final quote of 17,674.39. SoftBank Corp, an index-heavyweight, limited gains. The bank is a major stakeholder in Alibaba that reported lower-than-expected revenues. For the week the index added +0.9%, ending the month with a gain of 1.3%. The Japanese Unemployment Rate declined for the month of December to 3.4%. The Tokyo Consumer Price Index rose to +2.3% with a previous reading of +2.1%. Household Spending decreased by -3.4%, analysts expected a decline by -2.5%. The National CPI was unchanged at +2.4%, ex fresh food CPI rose by 2.5%, less than the expected 2.6%. Industrial Production for December rose by +1.0% in December compared to -0.6% in November, not meeting forecasts of +1.3%. Housing starts shrank by -14.7% for a 10^th straight year-on-year decline.

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual

00:05 United Kingdom Gfk Consumer Confidence January -4 -2 +1

00:30 Australia Producer price index, q / q Quarter IV +0.2% +0.1%

00:30 Australia Producer price index, y/y Quarter IV +1.2% +1.1%

00:30 Australia Private Sector Credit, m/m December +0.5% +0.5%

00:30 Australia Private Sector Credit, y/y December +5.9% +5.9%

05:00 Japan Housing Starts, y/y December -14.3% -14.7%

07:00 Germany Retail sales, real adjusted December +1.0% +0.2%

07:00 Germany Retail sales, real unadjusted, y/y December -0.8% +4.0%

The U.S. dollar broadly lower against its major peers slightly trimming Thursday's gains after the mixed U.S. economic data yesterday. The number of initial jobless claims in the week ending January 24 in the U.S. fell by 43,000 to 265,000 from 308,000 in the previous week. Pending home sales in the U.S. declined 3.7% in December, missing expectations for a 0.6% increase, after a 0.6% gain in November. November's figure was revised down from a 0.8% rise. That was the biggest monthly decrease since December 2013. Today market participants await a set of U.S. data including the GDP for the fourth quarter, the Chicago Purchasing Manager's Index and the Reuters/Michigan Consumer Sentiment.

The Australian dollar traded recovered slightly from yesterday's 2% slump, as market participants expect that the central bank is likely to cut rates on February 3^rd. The aussie recently was under pressure as falling energy and commodity prices weighed. Australia's Producer Price Index for the fourth grew less compared to the previous quarter with a reading of +0.1%. On a yearly basis the index rose +1.1% compared to +1.2% in the previous quarter. Private Sector Credit was unchanged at monthly +0.5% and +5.9% on a yearly basis. All eyes are on the next RBA meeting.

New Zealand's dollar traded stronger against the greenback. Yesterday data on Building Permits showed a decline by -2.1% compared to revised +10.5% in the previous month. The Reserve Bank of New Zealand surprised investors on Thursday with a possible rate cut.

The Japanese yen traded higher against the greenback on Friday after a mixed set of data that was mostly in line with forecasts. The Japanese Unemployment Rate declined for the month of December to 3.4%. The Tokyo Consumer Price Index rose to +2.3% with a previous reading of +2.1%. Household Spending decreased by -3.4%, analysts expected a decline by -2.5%. The National CPI was unchanged at +2.4%, ex fresh food CPI rose by 2.5%, less than the expected 2.6%. Industrial Production for December rose by +1.0% in December compared to -0.6% in November, not meeting forecasts of +1.3%. Housing starts shrank by -14.7% for a 10^th straight year-on-year decline.

EUR/USD: the euro traded slightly stronger against the greenback

(time / country / index / period / previous value / forecast)

07:45 France Consumer spending December +0.4%

07:45 France Consumer spending, y/y December -1.1%

08:00 Switzerland KOF Leading Indicator January 98.7 97.8

09:30 United Kingdom Net Lending to Individuals, bln December 3.3

09:30 United Kingdom Mortgage Approvals December 59

10:00 Eurozone Unemployment Rate December 11.5% 11.5%

10:00 Eurozone Harmonized CPI, Y/Y (Preliminary) January -0.2% -0.5%

13:30 Canada GDP (m/m) November +0.3%

13:30 U.S. Employment Cost Index Quarter IV +0.7%

13:30 U.S. PCE price index, q/q Quarter IV +3.2%

13:30 U.S. PCE price index ex food, energy, q/q Quarter IV +1.4%

13:30 U.S. GDP, q/q (Preliminary) Quarter IV +5.0% +3.3%

14:45 U.S. Chicago Purchasing Managers' Index January 58.3 58.1

15:00 U.S. Reuters/Michigan Consumer Sentiment Index (Finally) January 98.2 98.1

EUR / USD

Resistance levels (open interest**, contracts)

$1.1526 (3205)

$1.1453 (3160)

$1.1397 (1523)

Price at time of writing this review: $1.1341

Support levels (open interest**, contracts):

$1.1264 (4033)

$1.1220 (1949)

$1.1158 (4430)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 84071 contracts, with the maximum number of contracts with strike price $1,2100 (6530);

- Overall open interest on the PUT options with the expiration date February, 6 is 75387 contracts, with the maximum number of contracts with strike price $1,1700 (6682);

- The ratio of PUT/CALL was 0.90 versus 0.92 from the previous trading day according to data from January, 29

GBP/USD

Resistance levels (open interest**, contracts)

$1.5400 (542)

$1.5301 (654)

$1.5203 (1078)

Price at time of writing this review: $1.5081

Support levels (open interest**, contracts):

$1.4993 (1041)

$1.4897 (1726)

$1.4798 (1171)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 16867 contracts, with the maximum number of contracts with strike price $1,5150 (1129);

- Overall open interest on the PUT options with the expiration date February, 6 is 17240 contracts, with the maximum number of contracts with strike price $1,5100 (1836);

- The ratio of PUT/CALL was 1.02 versus 1.02 from the previous trading day according to data from January, 29

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

(raw materials / closing price /% change)

Light Crude 44.55 +0.04%

Gold 1,258.70 +0.33%

(index / closing price / change items /% change)

TOPIX 1,413.58 -16.34 -1.14%

SHANGHAI COMP 3,263.73 -42.00 -1.27%

HANG SENG 24,574.87 -286.94 -1.15%

FTSE 100 6,810.6 -15.34 -0.22%

CAC 40 4,631.43 +20.49 +0.44%

Xetra DAX 10,737.87 +26.90 +0.25%

S&P 500 2,021.25 +19.09 +0.95%

NASDAQ Composite 4,683.41 +45.41 +0.98%

Dow Jones 17,416.85 +225.48 +1.31%

(pare/closed(GMT +2)/change, %)

EUR/USD $1,1319 +0,28%

GBP/USD $1,5065 -0,48%

USD/CHF Chf0,9234 +2,00%

USD/JPY Y118,25 +0,60%

EUR/JPY Y133,86 +0,89%

GBP/JPY Y178,17 +0,16%

AUD/USD $0,7760 -1,62%

NZD/USD $0,7263 -0,73%

USD/CAD C$1,2615 +0,64%

(time / country / index / period / previous value / forecast)

01:30 Japan Unemployment Rate December 3.5% 3.5%

01:30 Japan Tokyo Consumer Price Index, y/y January +2.1%

01:30 Japan Tokyo CPI ex Fresh Food, y/y January +2.3% +2.2%

01:30 Japan Household spending Y/Y December -2.5% -2.5%

01:30 Japan National Consumer Price Index, y/y December +2.4%

01:30 Japan National CPI Ex-Fresh Food, y/y December +2.7% +2.6%

01:50 Japan Industrial Production (MoM) (Preliminary) December -0.6% +1.3%

01:50 Japan Industrial Production (YoY) (Preliminary) December -3.7%

02:05 United Kingdom Gfk Consumer Confidence January -4 -2

02:30 Australia Producer price index, q / q Quarter IV +0.2%

02:30 Australia Producer price index, y/y Quarter IV +1.2%

02:30 Australia Private Sector Credit, m/m December +0.5%

02:30 Australia Private Sector Credit, y/y December +5.9%

07:00 Japan Housing Starts, y/y December -14.3%

09:00 Germany Retail sales, real adjusted December +1.0%

09:00 Germany Retail sales, real unadjusted, y/y December -0.8%

09:45 France Consumer spending December +0.4%

09:45 France Consumer spending, y/y December -1.1%

10:00 Switzerland KOF Leading Indicator January 98.7 97.8

11:30 United Kingdom Net Lending to Individuals, bln December 3.3

11:30 United Kingdom Mortgage Approvals December 59

12:00 Eurozone Unemployment Rate December 11.5% 11.5%

12:00 Eurozone Harmonized CPI, Y/Y (Preliminary) January -0.2% -0.5%

15:30 Canada GDP (m/m) November +0.3%

15:30 U.S. Employment Cost Index Quarter IV +0.7%

15:30 U.S. PCE price index, q/q Quarter IV +3.2%

15:30 U.S. PCE price index ex food, energy, q/q Quarter IV +1.4%

15:30 U.S. GDP, q/q (Preliminary) Quarter IV +5.0% +3.3%

16:45 U.S. Chicago Purchasing Managers' Index January 58.3 58.1

17:00 U.S. Reuters/Michigan Consumer Sentiment Index (Finally) January 98.2 98.1