The Swiss National Bank (SNB) released its Quarterly Bulletin. The central bank expects the Swiss GDP to grow under 1% this year, and unemployment is expected to rise. The SNB noted that GDP could decline in the first quarter of 2015.

According to Quarterly Bulletin, consumer price inflation is expected to be - 1.3% in six to twelve months. Inflation forecasts for the next three to five years were downgraded to 0.5% from 1.1%.

The European Central Bank (ECB) Chief Economist Peter Praet said in London on Wednesday that politicians and monetary authorities should show "verbal discipline" about the crisis in Greece. He also said that the Eurozone has "a lack of crisis preparation".

Praet pointed out that quantitative easing by the ECB was implemented at the optimum time.

The ECB chief economist noted that there is "a cyclical recovery" in the Eurozone.

Stock indices closed lower as technology stocks declined.

German Ifo business climate index climbed to 107.9 in March from 106.8 in February, exceeding expectations for a rise to 107.4. It was the highest level since July 2014.

The better sentiment was supported by ECB's quantitative easing.

The number of mortgage approvals in the U.K. increased to 37,300 in February from 36,500 in January, exceeding expectations for a rise to 36,900. January's figure was revised up from 36,400.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,990.97 -28.71 -0.41 %

DAX 11,865.32 -140.37 -1.17 %

CAC 40 5,020.99 -67.29 -1.32 %

The Reserve Bank of Australia (RBA) said in its Financial Stability Review that it expects lower mortgage rates to boost housing demand further. The central bank added that it will monitor closely the housing lending.

The RBA pointed out that risks in the non-financial business sector are low.

The Asian Development Bank (ADB) said it expects that Emerging Asian economies will perform strongly this year due to lower global commodity prices and recovery in major industrial economies. The ADB forecasted 6.3% growth for Emerging Asian economies in 2015 as well as 2016.

According to the ADB, China is expected to expand by 7.2% in 2015 and 7.0% in 2016.

India is expected to rise by 7.8% in the financial year 2015 ending March 2016 and 8.2% in the fiscal year 2016 ending March 2017.

According to the Asahi newspaper, the Bank of Japan (BoJ) Deputy Governor Kikuo Iwata said that it is difficult to achieve 2% inflation within two years due to falling oil prices and a bigger-than-expected hit on spending caused by last year's sales tax hike. But he added that he expected inflation to achieve 2% target at or around the fiscal year beginning in April due to wage rise and economic recovery in Japan.

The Bank of France reported on Tuesday that its net profit plunged to €2.07 billion in 2014 from €2.44 billion in 2013. The decline was driven by a cut in interest rates and as banks borrowed less from the central bank.

"This change results mainly from monetary policy decisions taken during the year," the Bank of France noted.

Stimulus measures by the European Central Bank didn't have a significant impact on the results.

The Bank of France governor Christian Noyer said on Tuesday that the central bank purchased 18 billion euros of bonds under the European Central Bank's bond-buying programme. The Bank of France bought 5.7 billion euros of French government bonds, 1.4 billion euros of supranational bonds and 11 billion euros of covered bonds.

The U.S. Commerce Department released durable goods orders data on Wednesday. The U.S. durable goods orders dropped 1.4% in February, missing expectations for a 0.2% increase, after a 2.0% rise in January. January's figure was revised down from a 2.8% increase.

The decline was driven by a lower demand for products made in the U.S. A decline in transportation orders, defence and civilian aircraft weighed on durable goods orders.

The U.S. durable goods orders excluding transportation declined 0.4% in February, missing expectations for a 0.4% gain, after a 0.7% decrease in January. January's figure was revised down from a 0.3% gain.

U.S. stock-index futures fluctuated amid corporate mergers and data showing durable goods unexpectedly dropped.

Global markets:

Nikkei 19,746.2 +32.75 +0.2%

Hang Seng 24,528.23 +128.63 +0.5%

Shanghai Composite 3,662.09 -29.32 -0.8%

FTSE 7,012.73 -6.95 -0.1%

CAC 5,048.2 -40.08 -0.8%

DAX 11,928.18 -77.51 -0.6%

Crude oil $47.79 (+0.57%)

Gold $1196.50 (+0.43%)

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

Upgrades:

Downgrades:

Tesla (TSLA) downgraded to Underperform from Outperform at Credit Agricole, target lowered from $275 to $220

Twitter (TWTR) downgraded from Buy to Hold at Pivotal Research Group, target $51

Other:

UnitedHealth (UNH) initiated at Buy at Mizuho, target $140

The Chicago Fed President Charles Evans said in London on Wednesday that there is no reason to hike interest rate until 2016 due to low inflation. He added that it is better to wait until it is clear that inflation will reach the Fed's 2% target.

Evans believes that inflation will not reach the Fed's 2% until 2018. He noted that a stronger U.S. dollar is the downside risk to inflation. "The stronger dollar presents a clear disinflationary pressure through its influence on U.S. import prices", the Chicago Fed president said.

Evans is a voting member of the Federal Open Market Committee this year.

European stocks declined on Wednesday. Besides the German IFO business climate data Greece remains in the focus. Officials reported that the Greek government will present an updated list with planned reforms on Monday 30th to its Eurozone creditors.

The business climate in Eurozone's largest economy rose more-than-expected and is a strong sign that the economic recovery is on track and the QE program of the ECB starts to have positive effects. The index increased for a fifth consecutive month. A day earlier data showed that growth in manufacturing and services accelerated.

The IFO index is based on a survey of 7,000 executives who evaluate the relative level of doing business and expectations for the next 6 months. Companies are confident as the weak euro, low financing costs and robust growth of the U.S. economy

The IFO - Business Climate for the month of March improved from 106.8 to 107.9 beating estimates of an increase to 107.4. Data on the IFO - Current Assessment came in at 112.0, compared to a previous reading of 111.3. IFO - Expectations rose from 102.5 to 103.9.

Today data on Mortgage Approvals came in above estimates easing concerns over U.K.'s housing sector. The housing market is supported by record low interest rates.

The number of new mortgages rose to 37,300 in February, a 5-month high, from revised 36,500 in January. Analysts expected an increase to 36,900.

The FTSE 100 index is currently trading lower, quoted at 7,008.33 -0.16%. Germany's DAX 30 lost -0.64% trading at 11,929.41 points - the export heavy index is weighed down by a stronger euro. France's CAC 40 is currently trading at 5,046.97 points, -0.81%.

The business climate in Eurozone's largest economy rose more-than-expected and is a strong sign that the economic recovery is on track and the QE program of the ECB starts to have positive effects. The index increased for a fifth consecutive month. A day earlier data showed that growth in manufacturing and services accelerated.

The IFO index is based on a survey of 7,000 executives who evaluate the relative level of doing business and expectations for the next 6 months. Companies are confident as the weak euro, low financing costs and robust growth of the U.S. economy

The IFO - Business Climate for the month of March improved from 106.8 to 107.9 beating estimates of an increase to 107.4. Data on the IFO - Current Assessment came in at 112.0, compared to a previous reading of 111.3. IFO - Expectations rose from 102.5 to 103.9.

BLOOMBERG

The 20 Million Barrels of Pure Profit Sitting in U.S. Oil Tanks

(Bloomberg) -- Just as Wall Street says the U.S. is running out of room to store oil, it turns out there's another 20 million barrels of empty space.

Where? Right at the top of the tanks.

A supply glut has dragged U.S. crude for May delivery almost $10 a barrel below contracts a year out. This market structure, known as contango, has encouraged traders to shove the most oil in 80 years into storage so they can sell it for more in the future. The problem is, tanks are filling up, according to banks from Bank of America Corp. to Citigroup Inc. and Goldman Sachs Group Inc.

Source: http://www.bloomberg.com/news/articles/2015-03-24/there-s-pure-profit-sitting-at-the-top-of-u-s-crude-oil-tanks

REUTERS
Japanese investors' mega buying spree overseas keeps yen under pressure

(Reuters) - Purchases of foreign stocks and bonds by Japan's giant pension funds and other big investors in 2015 could be their highest for at least a decade, if they keep pace with the $42 billion splurged during the first two months.

At that rate their annual net sales of yen would be over 30 trillion, the most since the government started keeping records a decade ago, and almost as much as the previous five years combined.

That will add to pressure on the yen, which earlier this month struck 122 per dollar - its lowest level since July 2007.

Source: http://www.reuters.com/article/2015/03/24/markets-japan-outflows-idUSL3N0WL1QZ20150324

BLOOMBERG

Dollar Revives With Volatility as BofA Keeps Euro Parity Call

(Bloomberg) -- Bank of America Corp. is keeping faith that the dollar will rise to parity with the euro this year amid signs the U.S. currency has found its feet following the worst weekly slide in three years.

The greenback remained stronger after gaining Tuesday as the impact of the Federal Reserve's surprise reduction in interest-rate forecasts waned and investors' focus turned to U.S. economic data. The Bloomberg Dollar Spot Index has weakened almost 3 percent from a decade high reached March 13, while a gauge of expected currency swings has jumped by more than 20 percent over the past month.

"This trend of U.S. dollar strength is not going away any time soon," Adarsh Sinha, head of Asia-Pacific Group-of-10 foreign-exchange strategy at Bank of America in Hong Kong, said at a media briefing Wednesday. As long as the Fed raises rates this year, monetary-policy divergence will drive the dollar higher against its major peers, he said.

Source: http://www.bloomberg.com/news/articles/2015-03-24/dollar-shows-revival-signs-as-data-dependence-spurs-volatility

European stocks open mixed on Wednesday. Besides the German IFO business climate data Greece remains in the focus. As it became known the Greek government will present an updated list with planned reforms on Monday 30th to its Eurozone creditors.

The business climate in Eurozone's largest economy rose more-than-expected and is a strong sign that the economic recovery is on track and the QE program of the ECB starts to have positive effects.

The IFO - Business Climate for the month of March improved from 106.8 to 107.9 beating estimates of an increase to 107.4. Data on the IFO - Current Assessment came in at 112.0, compared to a previous reading of 111.3. IFO - Expectations rose from 102.5 to 103.9.

The FTSE 100 index is currently trading +0.21% quoted at 7,034.23 points. Germany's DAX 30 is trading higher at 12,011.98 points +0.05%, back above the psychologically important 12,000 points level. France's CAC 40 is currently trading at 5,081.57 points, -0.13%.

U.S. stocks booked losses on Tuesday continuing Monday's decline. Yesterday's set of U.S. data including inflation, home sales and manufacturing showed that the U.S. economy is on track. An interest rate hike in June is still a possible option. The S&P 500 closed -0.61% with a final quote of 2,091.50 points. The DOW JONES index lost -0.58%, closing at 18,011.14 points.

Chinese stocks were trading mixed. Hong Kong's Hang Seng is trading higher +0.49% at 24,518.04 points. China's Shanghai Composite declined to 3,662.09 points closing -0.79% - ending the longest streak of positive days since 1992. The index rose 12% in 10 consecutive positive trading days. Chinese stocks were boosted by speculations on further monetary easing.

The Nikkei closed higher on Wednesday although investors remained cautious as the market seems technically overbought after the recent strong rally. On a light data day the index closed +0.17% with a final quote of 19,746.20 points.

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

Nikkei 225 19,713.45 -40.91 -0.21 %

Hang Seng 24,399.6 -94.91 -0.39 %

Shanghai Composite 3,691.95 +4.22 +0.11 %

FTSE 100 7,019.68 -17.99 -0.26 %

CAC 40 5,088.28 +33.76 +0.67 %

Xetra DAX 12,005.69 +109.85 +0.92 %

S&P 500 2,091.5 -12.92 -0.61 %

NASDAQ Composite 4,994.73 -16.25 -0.32 %

Dow Jones 18,011.14 -104.90 -0.58 %