Most stock indices traded higher as concerns over Greece's further bailout policy eased. The new Greece government plans to renegotiate the terms of its bailout.

Earlier, the European Central Bank said that it would not accept Greek government bonds.

German seasonal adjusted factory orders rose 4.2% in December, exceeding expectations for a 1.4% increase, after a 2.4% drop in November.

The Bank of England kept its interest rates unchanged at 0.5% and its asset purchase program unchanged at £375 billion. This decision was widely expected.

Analysts expect that the BoE will start to raise interest rate later in early 2016.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,865.93 +5.91 +0.09%

DAX 10,905.41 -5.91 -0.05%

CAC 40 4,703.3 +7.00 +0.15%

U.S. stock-index futures climbed as Pfizer Inc. announced a $17 billion deal while oil resumed a rebound.

Global markets:

Nikkei 17,504.62 -174.12 -0.98%

Hang Seng 24,765.49 +85.73 +0.35%

Shanghai Composite 3,136.88 -37.24 -1.17%

FTSE 6,838.74 -21.28 -0.31%

CAC 4,681.16 -15.14 -0.32%

DAX 10,871.45 -39.87 -0.37%

Crude oil $49.56 (+2.29%)

Gold $1264.50 (+0.02%)

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

European indices are trading lower today as concerns over Greece continue to weigh after the ECB unexpectedly cancelled the acceptance of Greek bonds in return for funding forcing the Greek central bank to provide billions of emergency liquidity for banks in the weeks to come.

Today data on German Factory orders for December came in at +4.2%, largely higher than the expected 1.5% with a reading of -2.4% in the previous month.

The Halifax House Price Index for January rose by +2.0%, beating forecasts of a slight increase of +0.2%. In the three months to January the index rose by +8.5%, higher than the +7.8% predicted by economists.

The Bank of England kept its benchmark interest rates unchanged at 0.50%. The Asset Purchase facility remained at 375 billion pounds. The policy committee voted unanimously.

Market participants look ahead to a set of U.S. data including Initial Jobless Claims.

The commodity heavy FTSE 100 index is currently trading -0.48% quoted at 6,827.08 points. Germany's DAX 30 lost -0.44% trading at 10,863.82. France's CAC 40 is currently trading at 4,664.30 points, -0.68%.

BLOOMBERG

Greece Sticks to Anti-Austerity Demands Following ECB Loan Cut

(Bloomberg) -- Greece held fast to demands to roll back austerity as the European Central Bank turned up the heat before Finance Minister Yanis Varoufakis meets one of his main antagonists, German counterpart Wolfgang Schaeuble.

The encounter at 12:30 p.m. in Berlin comes hours after Greece lost a critical funding artery when the ECB restricted loans to its financial system. That raised pressure on the 10-day-old government to yield to German-led austerity demands to stay in the euro zone.

The government "remains unwavering in the goals of its social salvation program, approved by the vote of the Greek people," according to a Finance-Ministry statement issued overnight. It's aim is "coming up with a European policy that will definitively put an end to the now self-perpetuating crisis of the Greek social economy."

Source: http://www.bloomberg.com/news/articles/2015-02-04/greece-loses-ecb-funds-raising-pressure-on-tsipras-to-yield

REUTERS

China stocks fall as central bank easing fails to impress; more stimulus expected

(Reuters) - Chinese stocks erased earlier gains and closed 1 percent lower on Thursday, after an injection of more money into the system by the central bank failed to impress investors who are worried about an ongoing crackdown on high-leverage trading.

The yuan and money rates dipped after the People's Bank of China (PBOC) cut banks' reserve requirement ratios by 50 basis points, a widely expected stimulus move to support the world's second-biggest economy.

"The cut was largely priced in to the stock market (already), but it has reconfirmed an important message to investors that China's monetary cycle has firmly shifted to the loosening camp," Jing Ning, Portfolio Manager at Fidelity Worldwide Investment, wrote in a note to clients.

Source: http://www.reuters.com/article/2015/02/05/us-china-markets-idUSKBN0L90R920150205

REUTERS

Oil drops more than $1 after crashing on inventory concerns

(Reuters) - Oil prices fell more than $1 on Thursday, extending big losses in the previous session as record high inventories in the United States coupled with concerns over global demand had cut short a four-day rally.

Oil markets remain highly volatile, with U.S. crude losing 9 percent on Wednesday in one of its biggest routs. In the previous four sessions, prices had rallied almost 19 percent from their lowest in nearly six years.

Brent crude for March delivery had dropped $1.02 to $53.14 a barrel by 0633 GMT (1.33 a.m. EST), after touching $55 a barrel earlier in the day. The contract had settled $3.21 or 5.5 percent lower the previous day.

Source: http://www.reuters.com/article/2015/02/05/us-markets-oil-idUSKBN0L907420150205

European stocks decline in early trading after the ECB unexpectedly cancelled the acceptance of Greek bonds in return for funding forcing the Greek central bank to provide billions of emergency liquidity for banks in the weeks to come.

Today data on German Factory orders for December came in at +4.2%, largely higher than the expected 1.5% with a reading of -2.4% in the previous month.

The Halifax House Price Index for January rose by +2.0%, beating forecasts of a slight increase of +0.2%. In the three months to January the index rose by +8.5%, higher than the +7.8% predicted by economists.

Markets await the BoE Interest Rate decision, Asset Purchase Facility and the MPC Rate Statement at 12:00 GMT. Later in the day the focus will be in U.S. Initial Jobless Claims scheduled for 13:30GMT.

The commodity heavy FTSE 100 index is currently trading -0.42% quoted at 6,831.34 points weighed by energy and mining stocks. Germany's DAX 30 declined by -0.16% trading at 10,894.22. France's CAC 40 lost -0.44%, currently trading at 4,675.87 points.

Today data on German Factory orders for December came in at +4.2%, largely higher than the expected 1.5% with a reading of -2.4% in the previous month.

The Halifax House Price Index for January rose by +2.0%, beating forecasts of a slight increase of +0.2%. In the three months to January the index rose by +8.5%, higher than the +7.8% predicted by economists.

U.S. markets snapped a two-day rally on Wednesday on worries over Greece and sliding oil prices. The ECB unexpectedly announced that it will not accept Greek sovereign bonds in return for funding, forcing the Greek central bank to provide billions of emergency liquidity for banks in the weeks to come.

A better-than expected ISM report and solid data on employment could not lead shares higher. Yesterday the Institute for Supply Management's non-manufacturing purchasing managers' index for the U.S. climbed to 56.7 in January from 56.5 in December, exceeding expectations for a rise to 56.6. The private sector in the U.S. added 213,000 jobs in January, according the ADP report on Wednesday. December's figure was revised up to 253,000 jobs from a previous reading of 241,000 jobs.

The DOW JONES index added +0.04% closing at 17,673.02 points. The S&P 500 declined by -0.42% with a final quote of 2,041.51 points.

Chinese stocks declined shedding early gains despite a cut in bank reserve requirements from 20% to 19.5% to encourage lending and fight off economic slowdown as investors still worry if stimulus measures are sufficient to spur the economy. Hong Kong's Hang Seng is trading +0.07% at 24,697.28 points. China's Shanghai Composite closed at 3,136.88 points -1.17%.

Japan's Nikkei dipped on Wednesday on news on the ECB's line on Greek debt, falling oil prices and profit taking on good corporate earnings reports, closing -0.98% with a final quote of 17,504.62.

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

Nikkei 225 17,678.74 +342.89 +1.98%

Hang Seng 24,679.76 +124.98 +0.51%

Shanghai Composite 3,175.08 -29.82 -0.93%

FTSE 100 6,860.02 -11.78 -0.17%

CAC 40 4,696.3 +18.40 +0.39%

Xetra DAX 10,911.32 +20.37 +0.19%

S&P 500 2,041.51 -8.52 -0.42%

NASDAQ Composite 4,716.7 -11.03 -0.23%

Dow Jones 17,673.02 +6.62 +0.04%