Most stock indices closed lower despite positive inflation data from the Eurozone. The inflation in the Eurozone rose to an annual rate of -0.3% in February from -0.6% in January. Analysts had expected a 0.5% drop.

Eurozone's unemployment rate fell to 11.2% in January from 11.3% in December. Analysts had expected the unemployment rate to climb to 11.4%. December's figure was revised up from 11.4%.

Eurozone's final manufacturing purchasing managers' index (PMI) fell to 51.0 in February from a preliminary reading of 51.1. Analysts had expected the final index to remain unchanged at 51.1.

Germany's final manufacturing PMI increased to 51.1 in February from a preliminary reading of 50.9. Analysts had expected the final index to remain unchanged at 50.9.

France's final manufacturing PMI decreased to 47.6 in February from a preliminary reading of 47.7. Analysts had expected the final index to remain unchanged at 47.7.

Net lending to individuals in the U.K. increased by £2.4 billion in January, after a £2.1 billion gain in December, missing expectations for a rise by £2.8 billion. December's figure was revised down from a £2.2 billion increase.

The number of mortgages approvals in the U.K. increased by 60,786 in January, after a gain by 60,349 in December.

The U.K. manufacturing PMI increased to 54.1 in February from 53.1 in January. January's figure was revised up from 53.0.

The U.K. house price index decreased 0.1% in January, after a 0.3% rise in December.

On a yearly basis, the U.K. house price inflation fell to 5.7% in January from 6.8% in December.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,940.64 -6.02 -0.09 %

DAX 11,410.36 +8.70 +0.08 %

CAC 40 4,917.32 -34.16 -0.69 %

The Institute for Supply Management released its manufacturing purchasing managers' index for the U.S. on Monday. The index declined to 52.9 in February from 53.5 in January, missing expectations for a decline to 53.4. That was the lowest reading since January 2014.

A reading above 50 indicates expansion, below indicates contraction.

Most components of the index fell, showing a slow growth in the manufacturing sector.

Energy industry was hurt by lower oil prices.

The new orders index fell to 52.5 in February from 52.9 in January.

The prices paid index remained unchanged at 35 in February. The employment index decreased to 51.4 from 54.1.

The U.S. Commerce Department released personal spending and income figures on Monday. Personal spending decreased 0.2% in January, after a 0.3% fall in December.

Consumer spending makes more than two-thirds of U.S. economic activity.

The decline was driven by lower gasoline prices.

Personal income climbed 0.3% in January, after a 0.3% rise in December.

The personal consumption expenditures (PCE) price index excluding food and energy rose 0.1% in January, in line with expectations, after a flat reading in December.

On a yearly basis, the PCE price index excluding food and index rose 1.3% in January, after a 1.3% increase in December.

The PCE index are below the Fed's 2% inflation target. The PCE index is the Fed's preferred measure of inflation.

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

Upgrades:

Downgrades:

IBM downgraded to Underweight from Neutral at Atlantic Equities, target $140

Other:

Twitter (TWTR) initiated with a Buy at Axiom Capital, target $60

European stocks mostly declined over the course of the day. The FTSE and the DAX retreated from all-time highs set earlier in the session.

U.K.'s Nationwide House Price Index for February declined to the lowest in in 17 months in February from a previous reading of +0.3% by -0.1%. Year on year the index rose +5.7% compared to +6.8% last year.

France, Germany and the Eurozone reported Manufacturing PMIs. February data from France showed a decline from previous 47.7 to 47.6 below estimates of an unchanged reading. The German PMI rose to 51.1, beating estimates of on unchanged reading of 50.9. Manufacturing PMI for the Eurozone declined to 51.0 coming from a previous reading of 51.1 and 0.1 points below estimates.

The Unemployment Rate in the Eurozone declined to the lowest level since April 2012, Eurostat reported today. The number of people unemployed fell to a seasonally adjusted 11.2% in January from 11.3% in December (revised down from 11.4%). Analyst expected a reading of 11.4%. In December. Germany has the lowest Unemployment Rate with 4.7% followed by Austria with 4.8% whereas Greece and Spain have the highest.

Although data for Consumer Price Inflation came in higher-than-expected at -0.3% compared to estimates at -0.5% and a previous reading of -0.6% inflation remained in negative territory for a third consecutive month, preliminary data showed. Given the reading far below the targeted inflation rate of the ECB around 2%, concerns over deflation in the Eurozone persist. Low oil prices kept inflation low.

U.K Mortgage Approvals came in below expectations of 61 at 60.7. The Purchasing Manager Index Manufacturing improved from revised 53.1 (previous reading of 53) to 54.1 in February. Net Lending to Individuals rose from 2.2 billion to 2.4 billion. Analyst expected a rise to 2.6 billion.

The FTSE 100 index is currently trading +0.01% quoted at 6,947.39. Germany's DAX 30 added +0.10% trading at 11,413.23, close to its new all-time high. France's CAC 40 is currently trading at 4,924.40 points, -0.55%.

BLOOMBERG

Watch Out for BOJ in April, Says Economist Who Saw October Move

(Bloomberg) -- Watch out for another surprise from Bank of Japan Governor Haruhiko Kuroda this April, says Yuji Shimanaka, an economist who correctly predicted the unexpected expansion in monetary easing in October.

Shimanaka, at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo, is among a minority of analysts who forecast that further stimulus will come so early. According to the 59-year-old, who has been a market economist for more than three decades, one of several gauges of consumer prices could approach zero or even decline by March, challenging the central bank's outlook for inflation to accelerate in the year ahead and forcing its hand.

While 26 of 35 economists in a Feb. 5-10 survey by Bloomberg News forecast the BOJ will expand monetary stimulus this year, only seven expect a move in April, with Oct. 30 the most popular pick.

Source: http://www.bloomberg.com/news/articles/2015-03-02/watch-out-for-boj-in-april-says-economist-who-saw-october-move-i6ra3qja

REUTERS
Eurogroup head: Greek reforms could prompt bailout payment in March

(Reuters) - Greece's international creditors could pay part of the 7.2 billion euros remaining in its bailout pot as early as this month if Athens starts adopting necessary reforms, the head of the euro zone finance ministers' group said.

"My message to the Greeks is: try to start the program even before the whole renegotiation is finished," Dutch Finance Minister Jeroen Dijsselbloem told the Financial Times in an interview.

"There are elements that you can start doing today. If you do that, then somewhere in March, maybe there can be a first disbursement. But that would require progress and not just intentions," he was quoted as saying.

Source: http://www.reuters.com/article/2015/03/02/us-eurozone-greece-eurogroup-idUSKBN0LY0I120150302

REUTERS
Near Fed majority backs June liftoff Yellen hasn't yet endorsed

(Reuters) - Janet Yellen's premium on consensus may lead to a Federal Reserve decision the chair hasn't yet endorsed, as a near majority aligns in favor of a possible June interest rate hike.

Seven of the Fed's current 17 members have now said they at least want the option of a June tightening on the table, or have pushed in general for an earlier increase amid an expectation that wages and inflation will turn higher.

By contrast, there's a dwindling core of officials who say publicly that the economy and labor markets in particular still have a long way to go -- only four Fed members have in recent weeks clearly said that rate hikes won't be appropriate until much later in the year or even into 2016.

Source: http://www.reuters.com/article/2015/03/02/us-usa-fed-liftoff-insight-idUSKBN0LY0D920150302

European stocks open mostly higher on Monday led by the financial and mining sector.

U.K.'s Nationwide House Price Index for February declined to the lowest in in 17 months in February from a previous reading of +0.3% by -0.1%. Year on year the index rose +5.7% compared to +6.8% last year.

France, Germany and the Eurozone reported Manufacturing PMIs. February data from France showed a decline from previous 47.7 to 47.6 below estimates of an unchanged reading. The German PMI rose to 51.1, beating estimates of on unchanged reading of 50.9. Manufacturing PMI for the Eurozone declined to 51.0 coming from a previous reading of 51.1 and 0.1 points below estimates.

Later in the session Eurozone Unemployment Rate and Preliminary Harmonized CPI will be in the focus (10:00 GMT). In the U.S. a set of data including the ISM Manufacturing Index, Personal Income and Spending is will be closely watched.

The commodity heavy FTSE 100 index is currently trading +0.33% quoted at 6,969.43 points boosted by mining stocks. Germany's DAX 30 is trading +0.36 at 11,443.04 points. Both, DAX and FTSE100 are set new all-time highs in today's trading session. France's CAC 40 declined by -0.03%, currently trading at 4,949.80 points.

U.S. stocks closed lower on Firday on mixed U.S. economic data. The U.S. revised GDP grew 2.2% in the fourth quarter, lower than the previous estimated growth of 2.6%. Analysts had expected U.S. GDP to rise 2.1%. The Chicago purchasing managers' index declined to 45.8 in February from 59.4 in January, missing expectations for a fall to 58.4. That was the lowest level since July 2009. The final University of Michigan's consumer sentiment index was 95.4 in February, beating expectations for a decline to 94.2, down from the preliminary estimate of 98.2. The S&P 500 closed -0.30% with a final quote of 2,104.50 points. The DOW JONES index declined by -0.45% closing at 18,132.70 points. Despite Friday's losses U.S. indices ended the month near record highs and posted the biggest monthly gains since October 2011.

Chinese stocks traded higher after the Peoples Bank of China cut benchmark interest rates for the second time in three months by a quarter percentage point to 5.35% to spur economic growth and ward of deflation. The HSBC Manufacturing PMI in Asia's biggest economy further expanded into positive territory and rose to 50.7 compared to 50.1 in the previous month. Analysts expected the index to remain at 50.1 points. Hong Kong's Hang Seng is trading +0.12% at 24,853.19 points. China's Shanghai Composite closed at 3,336.14 points +0.78%.

The Nikkei continues extending its 15-year high on Monday on a weaker Japanese yen and the rate cut of the PBoC. The Nikkei closed +0.15% with a final quote of 18,826.88 points. Data on the Japanese Manufacturing PMI for February came in at 51.6, better than the expected 51.5 and the previous reading of 51.1 points.

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

Nikkei 225 18,797.94 +12.15 +0.06 %

Hang Seng 24,823.29 -78.77 -0.32 %

Shanghai Composite 3,310.72 +12.36 +0.37 %

FTSE 100 6,946.66 -3.07 -0.04 %

CAC 40 4,951.48 +40.86 +0.83 %

Xetra DAX 11,401.66 +74.47 +0.66 %

S&P 500 2,104.5 -6.24 -0.30 %

NASDAQ Composite 4,963.53 -24.36 -0.49 %

Dow Jones 18,132.7 -81.72 -0.45 %