Stock indices closed higher on speculation the ECB will add further stimulus measures as the Swiss National Bank (SNB) announced today that it will discontinue the 1.20 per euro exchange rate floor.

The Swiss National Bank (SNB) President Thomas Jordan said at a press conference on Thursday that the SNB will intervene in the foreign exchange markets if required.

Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

Eurozone's trade surplus widened to €20.0 billion in November from €19.6 billion in October, missing expectations for a rise to €21.3 billion. October's figure was revised up from a surplus of €19.4 billion.

The increase was driven by a weaker euro and falling oil prices.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,498.78 +110.32 +1.73%

DAX 10,032.61 +215.53 +2.20%

CAC 40 4,323.2 +99.96 +2.37%

U.S. stock-index futures rose as data showed wholesale prices fell and New York-area manufacturing expanded. Futures fluctuated earlier after Switzerland's central bank unexpectedly gave up its minimum exchange rate.

Global markets:

Nikkei 17,108.7 +312.74 +1.86%

Hang Seng 24,350.91 +238.31 +0.99%

Shanghai Composite 3,335.88 +113.44 +3.52%

FTSE 6,457.9 +69.44 +1.09%

CAC 4,294.21 +70.97 +1.68%

DAX 9,956.74 +139.66 +1.42%

Crude oil $50.27 (+3.75%)

Gold $1255.20 (+1.67%)

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

Upgrades:

Downgrades:

Apple (AAPL) downgrade to Neutral from Buy at Mizuho, target $115

Johnson&Johnson (JNJ) downgraded to Sell from Neutral at Goldman

Other:

Hewlett-Packard (HPQ) removed from Short-Term Buy List at Deutsche Bank

JPMorgan Chase (JPM) target lowered to $65 from $68 at Jefferies

Bank of America (BAC) earned $0.32 per share in the fourth quarter, missing analysts' estimate of $0.31. Revenue in the fourth quarter dropped 12.7% year-over-year to $20.15 billion, missing analysts' estimate of $21.01 billion.

Bank of America (BAC) shares decreased to $15.54 (-3.12%) prior to the opening bell.

Citigroup (C) earned $0.06 per share in the fourth quarter, missing analysts' estimate of $0.10. Revenue in the fourth quarter increased 0.2% year-over-year to $17.81 billion, missing analysts' estimate of $18.53 billion.

Citigroup (C) shares decreased to $48.55 (-1.02%) prior to the opening bell.

European indices sharply declined after the SNB decided to discontinue the minimum exchange rate of 1.20 per euro and lowered interest rates more into negative territory to -0.75. The surprise move erased early gains driven by a recovery in commodities. The Swiss franc rallied against its major peers and Swiss stocks plunged.

Earlier in the session markets were driven by expectations that the ECB will implement quantitative easing after its policy meeting on January 22^nd after the interim ruling by the European Court of Justice. Yesterday Advocate General Pedro Cruz Villalon of the EU Court of justice in Luxembourg said the ECB's Outright Monetary Transactions program is "in principle" in line with European law and advised the judges to approve the measures.

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.

Eurozone's Trade Balance rose less-than-expected in the last quarter. Analysts forecasted the balance to rise to 21.3 billion, 1.3 billion more than the actual reading reported by Eurostat. In the previous quarter the Trade Balance had a reading of 19.4 billion.

In today's session the FTSE 100 index lost declining -0.61% quoted at 6,349.27. France's CAC 40 lost -0.66% trading at 4,195.46. Germany's DAX 30 is currently trading -0.30% at 9,787.87.

European indices rebound from yesterday's drop tracking gains in commodities with mining and energy stocks adding the most as copper rose from 5-year lows and oil recovered. Yesterday commodities fell 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. Strong company quarterly results further lend support.

Markets were also driven by expectations that the ECB will implement quantitative easing at its policy meeting on January 22^nd after the interim ruling by the European Court of Justice. Yesterday Advocate General Pedro Cruz Villalon of the EU Court of justice in Luxembourg said the ECB's Outright Monetary Transactions program is "in principle" in line with European law and advised the judges to approve the measures.

The FTSE 100 index, the most commodity-and energy heavy index out of the three, is currently trading +1.14% quoted at 6,461.19 points, Germany's DAX 30 added +1.24% trading at 9,938.53. France's CAC 40 rose +1.31%, currently trading at 4,278.64 points.

Market participants are looking forward to the publication of the Eurozone's Trade Balance and later in the day the NY Fed Empire State manufacturing index, Initial Jobless claims and the Producer Price Index as well as the Philadelphia Fed Manufacturing Survey in the U.S.

U.S. markets closed lower on Wednesday after disappointing retail sales data showig the steepest drop in almost a year, with losses in the Basic Materials, Consumer Services and Financials losing the most. The DOW JONES index lost -1.06%, 186 points, closing at 17,427.09. The S&P 500 declined by -0.58% with a final quote of 2,011.27, dropping intraday below the level of 2,000 points.

Chinese stock markets rose on Thursday. Hong Kong's Hang Seng added +0.86% with a final quote of 24,319.17 points. China's Shanghai Composite closed at 3,335.88 points, adding 3.52%. China was reported to have broadened lending rules amid surging loan growth.

Japan's Nikkei advanced +1.86% posting the biggest gains in 4 weeks closing at 17,108.70 points after yesterday's sharp decline. A rebound in oil eased worries about global growth and lifted energy shares and a weaker Japanese yen helped exporters. Bank of Japan Governor Haruhiko Kuroda said that the bank will maintain stimulus measures until inflation is stable at 2 percent as monetary easing has its intended effects. Core Machinery Orders in November grew less-than expected +1.3%, analysts predicted +4.8%. Year on year Orders declined -14.6%, far more than the forecasted -5.8%.

U.S. markets closed lower on Wednesday for a fifth day as bank results disappointed and energy shares extended losses on falling oil prices. According to Reuters expectations for U.S. fourth-quarter earnings have been scaled back sharply. The SNB's decision to scrap its cap to the franc further added to volatility. A mixed set of economic data added to the negative sentiment. The Philadelphia Federal Reserve Bank released its manufacturing index on Thursday. The index dropped to 6.3 in January from 24.5 in December. That was the lowest level since February 2014. Analysts had expected the index to decline to 20.3. The DOW JONES index lost -0.61%, declining by 106 points, closing at 17,320.71. The S&P 500 declined by -0.92% with a final quote of 1,992.67, falling below the level of 2,000 points for the first time in a month.

Chinese stock markets were mixed on Friday amid speculation the government will increase stimulus to boost economic growth. Hong Kong's Hang Seng trading -0.80% at 24,156.92 points. China's Shanghai Composite closed at 3,377.43 points, adding +1.23% extending its longest weekly winning streak in 8 years.

Japan's Nikkei fell to a 2-½ moth low during trade. The index closed -1.43 at 16,864.16 points falling for a third week. A strong yen as a result of flight to safety weighed Japanese stocks down. At markets close speculations on pension funds and the BOJ buying stocks trimmed losses and investors saw the sharp decline in prices as buying opportunity.

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

Nikkei 225 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 100 6,388.46 -153.74 -2.35%

CAC 40 4,223.24 -67.04 -1.56%

Xetra DAX 9,817.08 -123.92 -1.25%

S&P 500 2,011.27 -11.76 -0.58%

NASDAQ Composite 4,639.32 -22.18 -0.48%

Dow Jones 17,427.09 -186.59 -1.06%