Stock indices closed lower after the World Bank lowered its global economic forecast. The World Bank cut its global economic growth forecast for 2015 and 2016 on Tuesday. This decision was driven by disappointing economic outlook in the Eurozone, Japan and some major emerging economies.

The World Bank expects that the global economy would grow 3% in 2015, down from its June forecast of 3.4%. The global growth will reach 3.3% in 2016, down from a June forecast of 3.5%. The global economy is expected to grow 3.2% in 2017.

The European Court of Justice (ECJ) said on Wednesday that Outright Monetary Transactions (OMT) bond-buying programme was legitimate and in line with monetary policy. The opinion was non-binding. A final decision is expected in the next six months.

The OMT programme was has been announced in September 2012. The programme allows the ECB to purchase government bonds of Eurozone members if they request help. The OMT programme has never been used.

The opinion by the ECJ probably paved the way for the launch of bond-buying programme by the European Central Bank.

The European Central Bank President Mario Draghi in an interview to the German newspaper Die Zeit released on January 14, 2015 that "all members of the Governing Council of the ECB are determined to fulfil our mandate". He added that the ECB's options were limited.

Industrial production in the Eurozone rose 0.2% in November, exceeding expectations for a flat reading, after a 0.3% rise in October. October's figure was revised up from a 0.1 increase.

On a yearly basis, Eurozone's industrial production fell 0.4% in November, beating expectations for a 0.9% drop, after a 0.8% gain in October. October's figure was revised up from a 0.7 increase.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,388.46 -153.74 -2.35%

DAX 9,817.08 -123.92 -1.25%

CAC 40 4,223.24 -67.04 -1.56%

Italian President Giorgio Napolitano resigned on Wednesday. This decision added to concerns over political stability in Italy.

Italy's Prime Minister Matteo Renzi has a difficult task of finding a successor.

The president's role in Italy is mainly ceremonial, but he can choose a prime minister and dissolve parliament.

U.S. stock-index futures fell as a deepening commodities rout and an unexpected decline in American retail sales spurred concern that global growth is slowing.

Global markets:

Nikkei 16,795.96 -291.75 -1.71%

Hang Seng 24,112.6 -103.37 -0.43%

Shanghai Composite 3,223.25 -12.05 -0.37%

FTSE 6,362.18 -180.02 -2.75%

CAC 4,220.11 -70.17 -1.64%

DAX 9,809.04 -131.96 -1.33%

Crude oil $45.45 (-0.96%)

Gold $1237.40 (+0.25%)

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

Upgrades:

Downgrades:

Verizon (VZ) downgraded to Hold form Buy at Evercore ISI

Other:

Facebook (FB) target raised to $100 from $88 at Oppenheimer(expect strong 4Q results)

Intel (INTC) target raised to $50 from $45 at Jefferies

Google (GOOG) target lowered from $722 to $700 at Credit Suisse

Wells Fargo (WFC) earned $1.02 per share in the fourth quarter, in line with expectations of analysts. Revenue in the fourth quarter rose 3.6% year-over-year to $21.40 billion, beating analysts' estimate of $21.29 billion.

WFC shares fell to $51.53 (-0.62%) prior to the opening bell.

JPMorgan (JPM) earned $1.19 per share in the fourth quarter, missing analysts' estimate of $1.31. Revenue in the fourth quarter fell 2.8% year-over-year to $22.51 billion, missing analysts' estimate of $23.22 billion.

JPMorgan shares decreased to $57.70 (-1.94%) prior to the opening bell, below МА(200) at D1.

European indices rebounded from early losses but are still trading negative as oil producers and miners lead declines amid a commodity rout after the World Bank cut the economic growth outlook for 2015 and 2016 on Tuesday naming economic slowdown in Europe, Japan and other major economies the reason. Stocks found support after Advocate General Pedro Cruz Villalon of the EU Court of justice in Luxembourg said that the ECB's Outright Monetary Transactions program is "in principle" in line with European law backing Mario Draghi. The ECB is determined to fulfill its mandate and is ready to buy government bonds to revive Eurozone's inflation.

Investors are looking forward to the European Central Bank policy meeting taking place on January 22^nd and the Greek elections on January 25^th where the anti-austerity party Syriza, that wants to renegotiate debt, is leading polls. According to Moody the "Grexit" seems a relatively unlikely scenario, even if the anti-austerity party Syriza will win in the upcoming Greek elections.

In today's session the FTSE 100 index plummeted the most being the most commodity-heavy index, declining -1.40% quoted at 6,450.31. France's CAC 40 lost -0.25% trading at 4,279.45 after a slump in early trading. Germany's DAX 30 is currently trading -0.13% at 9,928.50.

European indices open significantly lower erasing yesterday's gains amid a slump in copper fuelled by global growth concerns as the World Bank cut its forecast for 2015 despite continuously falling oil prices. The bank cited disappointing growth prospects in the Eurozone and Japan as main reasons. Miners and oil-stocks lead declines.

According to Moody the "Grexit" seems a relatively unlikely scenario, even if the anti-austerity party Syriza will win in the upcoming Greek elections on January 25^th.

The FTSE 100 index is currently trading -1.40% quoted at 6,450.41 points, Germany's DAX 30 lost -0.94% trading at 9,847.18. France's CAC 40 dropped by -1.32%, currently trading at 4,233.60 points. French consumer price inflation rose in December according to official data. The French CPI rose by +0.1% compared to -0.2% in the previous month. Analysts expected a flat reading of 0.0%.

Markets await the European Court of Justice Ruling for OMT due at 09:30 GMT and data on Industrial Production in the Eurozone at 10:00 GMT. Later in the day a set of U.S. data is due being published from 13:30 GMT on, including Retail Sales, Business Inventories and the Import Price Index.

U.S. markets closed lower on Tuesday after a volatile session, shedding early gains. The materials and energy sector weighed on the indices, extending the decline for a third day, as commodity and oil prices declined. The DOW JONES index lost -0.15%, 27 points, closing at 17,613.68. The S&P 500 declined by -0.26% with a final quote of 2,023.03.

Chinese stock markets reversed gains as the rally seems to lose momentum. Hong Kong's Hang Seng lost -0.26% with a final quote of 24,153.92 points. China's Shanghai Composite closed at 3,223.25 points, a decline by -0.37%. Foreign investors sold shares on a net basis for a second day.

Japan's Nikkei dropped sharply by 1.71% closing at 16,795.96 points as oil continued to slide weighing on oil-related shares. A record USD812 billion budget approved by Japans cabinet to support growth was could not support the stock market. Japan's finance Minister Taro Aso called for a drastic fiscal reform to balance budget by 2021. Preliminary Machine Tool Orders declined to +33.8% in December from a previous reading of +36.6% in November. Markets await data on Core Machinery Orders due late in the day at 23:50 GMT.

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

Nikkei 225 17,087.71 -110.02 -0.64%

Hang Seng 24,215.97 +189.51 +0.79%

Shanghai Composite 3,235.3 +5.98 +0.19%

FTSE 100 6,542.2 +40.78 +0.63%

CAC 40 4,290.28 +62.04 +1.47%

Xetra DAX 9,941 +159.10 +1.63%

S&P 500 2,023.03 -5.23 -0.26%

NASDAQ Composite 4,661.5 -3.21 -0.07%

Dow Jones 17,613.68 -27.16 -0.15%

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

06:00 Japan Prelim Machine Tool Orders, y/y December +36.6%

07:45 France CPI, m/m December -0.2% 0.0%

07:45 France CPI, m/m December +0.3% -0.1%

10:00 Eurozone Industrial production, (MoM) November +0.1% 0.0%

10:00 Eurozone Industrial Production (YoY) November +0.7% -0.9%

10:00 Eurozone European Court of Justice Ruling for ESM and Fiscal Compact

13:30 U.S. Retail sales December +0.7% +0.2%

13:30 U.S. Retail sales excluding auto December +0.5% +0.1%

13:30 U.S. Import Price Index December -1.5% -2.7%

15:00 U.S. Business inventories November +0.2% +0.2%

15:30 U.S. Crude Oil Inventories January -3.1

19:00 U.S. Fed's Beige Book

21:45 New Zealand Food Prices Index, m/m December -0.5%

21:45 New Zealand Food Prices Index, y/y December +0.6%

23:50 Japan Core Machinery Orders November -6.4% +4.8%

23:50 Japan Core Machinery Orders, y/y November -4.9% -5.8%