Fitch Ratings released its Risk Radar Global 1Q15 on Monday. The agency said that deflation in the Eurozone is the largest potential risk, despite the European Central Bank's (ECB) quantitative easing programme.

Fitch Ratings pointed out that underlying inflation remains subdued and longer-term inflation expectations are still below the ECB's 2% target. The agency noted that quantitative easing should help reduce the risk of prolonged deflation in the Eurozone due to a weaker euro.

Emerging markets face increasing pressures due to the structural adjustment in China and recession in Russia and Brazil, the report showed. The growth in emerging economies is expected to be 3.6% in 2015 and 4.2% in 2016, according to the report.

Stock indices closed lower as concerns over Greece's debt problems weighed on markets. The Greek government failed to reach an agreement with its creditors on Monday.

The consumer inflation in the Eurozone rose to an annual rate of -0.1% in March from -0.3% in February. Analysts had expected a 0.3% drop. Lower energy prices weighed on the consumer inflation.

Eurozone's unemployment rate fell to 11.3% in February from 11.4% in January. January's figure was revised down from 11.2%. Analysts had expected the unemployment rate to decline to 11.2%.

The number of unemployed people in Germany declined by 14,000 in March, exceeding expectations for a 10,000 decline, after a 20,000 drop in February.

Germany's adjusted unemployment rate was down to 6.4% in March from 6.5% in February. Analysts had expected the unemployment rate to remain unchanged 6.5%.

German adjusted retail sales fell 0.5% in February, beating forecasts of a 0.9% drop, after a 2.3% gain in January. January's figure was revised down from a 2.9% increase.

French consumer spending increased 0.1% in February, missing expectations for a 0.3% gain, after a 0.7% rise in January. January's figure was revised up from a 0.6% increase.

The gross domestic product in the U.K. rose 0.6% in the fourth quarter, up from a previous estimate of 0.5% gain, exceeding expectations for a 0.5% rise.

On a yearly basis, the U.K. GDP increased 3.0% in the fourth quarter, up from a previous estimate of 2.7% rise, exceeding expectations for a 2.7% gain.

The U.K. current account deficit narrowed to £18.5 billion in the fourth quarter from £27.7 billion in the third quarter. The third quarter's figure was revised down from a deficit of £27.0 billion. Analysts had expected the current account deficit to decrease to £21.2 billion.

Business Investment in the U.K. rose 0.9% in fourth quarter, after a 1.4% rise the previous quarter.

On a yearly basis, business Investment in the U.K. surged 3.7% in fourth quarter, after a 2.1% increase the previous quarter.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,773.04 -118.39 -1.72 %

DAX 11,966.17 -119.84 -0.99 %

CAC 40 5,033.64 -49.88 -0.98 %

The Fed Richmond President, Jeffrey Lacker, said on Tuesday that June will be "the appropriate time" to hike interest rate in the U.S. as labour market and other conditions continued to improve.

He noted that headline inflation is likely to recover toward 2% this year.

The Fed Richmond president also said that he has not decided if he will dissent in case the FOMC officials should vote not to hike interest rates in a June policy meeting.

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

The Conference Board released its consumer confidence index for the U.S. on Tuesday. The index jumped to 101.3 in March from 98.8 in February, beating expectations for a decline to 96.6. February's figure was revised up from 96.4.

"Consumers' assessment of current conditions declined for the second consecutive month, suggesting that growth may have softened in Q1, and doesn't appear to be gaining any significant momentum heading into the spring months," the director of economic indicators at The Conference Board, Lynn Franco, said.

The increase was driven by the better outlook for the labour market and incomes. The Conference Board's consumer expectations index for the next six months rose to 96.0 in March from 90.0 in February.

The present conditions index fell to 109.1 in March from 112.1 in February.

The Institute for Supply Management released its Chicago purchasing managers' index on Tuesday. The index climbed to 46.3 in March from 45.8 in February, missing expectations for a rise to 52.5.

A reading below the 50 mark indicates contraction.

The harsh weather and labour problems at West Coast ports weighed on the index.

Only employment subindex was above 50, while production, new orders, order backlog and supplier deliveries were below 50.

The S&P/Case-Shiller home price index increased 4.6% in January, in line with expectations, after a 4.4% gain in December.

December's figure was revised down from a 4.5% rise.

Chairman of the index committee at S&P Dow Jones Indices David Blitzer said that the increase was driven by low interest rates and strong consumer confidence in the U.S.

"Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback," he added.

The S&P/Case-Shiller home price index measures single-family home prices in 20 U.S. cities.

Statistics Canada released GDP (gross domestic product) data on Tuesday. Canada's GDP decreased 0.1% in January, missing expectations for a 0.2% gain, after a 0.3% rise in December.

The decrease was driven by a decline in the services sector. Service-sector output was down 0.3% in January. It was the first decline since February 2014.

Resource-sector output rose by 1.4% in January as oil-and-gas extraction climbed 2.6%.

Manufacturing output fell 0.7% in January.

U.S. stock-index futures declined amid a retreat among energy companies.

Global markets:

Nikkei 19,206.99 -204.41 -1.05%

Hang Seng 24,900.89 +45.77 +0.18%

Shanghai Composite 3,749.07 -37.50 -0.99%

FTSE 6,783.2 -108.23 -1.57%

CAC 5,039.36 -44.16 -0.87%

DAX 11,967.59 -118.42 -0.98%

Crude oil $47.84 (-1.73%)

Gold $1185.60 (+0.07%)

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

Upgrades:

Downgrades:

Other:

NIKE (NKE) target raised to $115 from $110 at Deutsche Bank; Buy

Apple (AAPL) target raised to $142 from $140 at RBC Capital Mkts; Outperform

The Fed Vice Chairman Stanley Fischer said on Monday that non-bank companies and activities can also lead to financial instability. He noted that regulators must closely monitor the shadow banking sector.

Fischer offered some ideas how to regulate non-bank lenders. "To promote solvency, one could impose ratio-type capital requirements, such as leverage-ratio requirements or risk-based requirements," the Fed vice chairman said.

European stocks turn negative on Tuesday. Stalling negotiations between Greece and the E.U. weigh on the markets as the country is struggling to unlock more bailout funds. European stocks are still up for the best quarter in years fuelled by the ECB's quantitative easing program. A weak euro and falling energy prices further helped European indices to book gains.

Data on German Retail Sales (real adjusted) came in at -0.5%, declining less than the estimated -0.9%. The January reading was revised from 2.9% to 2.3%. Retail Sales (real unadjusted) declined year on year from revised 5.0% to 3.6%, growing at a slower pace than the predicted 3.7%.

French Consumer Spending rose less than expected in February. Data came in at 0.1% comaed to forecasts of 0.3% and a previous reading of 0.7%. Year on year consumer spending rose from 2.6% to 3.0%.

The Unemployment Rate in Germany, Europe's powerhouse and biggest economy of the Eurozone, fell to a record low in in March, the German labour agency reported today. The rate dropped from a previous reading of 6.5% in February to 6.4% in March - Analyst expected an unchanged reading. The number of unemployed people shrank by 15,000 to 2.8 million, more than the predicted decline by 10,000. The data clearly shows the positive momentum in Germany. The countries' businesses profit from a low euro boosting exports and low energy costs.

U.K.'s GDP for the fourth quarter rose more than estimated. Data came in at 0.6% compared to a previous reading of 0.5% and above the estimated unchanged reading. Year on year the GDP rose 3.0%, beating estimates of a flat reading of 2.7%.

Eurozone's Unemployment fell from 11.4% to 11.3%. Analyst expected the reading to be unchanged.

Eurozone's Harmonized CPI declined year on year with a reading of -0.1%, beating estimates of -0.3% for March.

The commodity heavy FTSE 100 index is currently trading -0.84% quoted at 6,833.24 points. Germany's DAX 30 is trading at 12,016.22 points -0.58%. The DAX has risen almost 23% in the first quarter - the most in a quarter since 2003. France's CAC 40 is currently trading at 5,073.35 points, -0.20%.

BLOOMBERG

Melting Iron Ore Pressures RBA as April Rate Cut Now in Play

(Bloomberg) -- Australia's central bank is under intensifying pressure to cut interest rates next week as iron ore, the nation's biggest export, plunges to a decade low.

Traders' bets that the Reserve Bank of Australia will lower its cash rate by a quarter percentage point to a new record low of 2 percent have doubled to an 80 percent chance from 40 percent two weeks ago, swaps data compiled by Bloomberg show. Iron ore, which fell 47 percent last year, is headed for the biggest quarterly loss since at least 2009 as surging low-cost supplies swamp the global market while growth in demand from China slows.

A third of Australia's exports, or about 6 percent of gross domestic product, goes to China, and the majority of those shipments are iron ore. Kieran Davies of Barclays Bank plc estimates the fall in commodity prices means Australia's real exchange rate was 4 percent overvalued this quarter, prompting him to bring forward his rate-cut forecast to April from May.

Source: http://www.bloomberg.com/news/articles/2015-03-31/melting-iron-ore-pressures-rba-as-april-rate-cut-now-in-play

REUTERS

Oil extends losses as deadline for Iran nuclear deal looms

(Reuters) - Oil futures extended losses on Tuesday, as Iran and six world powers ramped up the pace of negotiations to reach a preliminary deal that could ease sanctions and allow more Iranian crude onto world markets.

With a deadline less than 24 hours away, United States, Britain, France, Germany, Russia and China were trying to break an impasse in negotiations aimed at stopping Iran from having the capacity to develop a nuclear bomb, in exchange for an easing of international sanctions.

Officials said talks on a framework accord, which is intended as a prelude to a comprehensive agreement by the end of June, could yet fall apart over disagreements on enrichment research and the pace of lifting sanctions.

Source: http://www.reuters.com/article/2015/03/31/us-markets-oil-idUSKBN0MR07I20150331

REUTERS

Major European share indexes on track for best quarter in years

LONDON, March 31 (Reuters) - European shares extended gains on Tuesday and headed for their best quarterly performance in several years, with Kingfisher leading the market higher after announcing it planned to sell about 60 B&Q stores in Britain.

Shares in Europe's biggest home-improvement retailer were up nearly 5 percent after it said it would close the stores, part of new Chief Executive Veronique Laury's plan to shake up the group.

"The new Chief Executive's transformation plan sounds promising, and these results underline why it is necessary. The reaction to the company's ambitious plans has been positive in early trade and adds to the company's recent share price rise," said Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.

Source: http://www.reuters.com/article/2015/03/31/markets-stocks-europe-idUSL6N0WX1FW20150331

European stocks open steady to higher on Tuesday. Stalling negotiations between Greece and the E.U. weigh on the markets as the country is struggling to unlock more bailout funds.

Data on German Retail Sales (real adjusted) came in at -0.5%, declining less than the estimated -0.9%. The January reading was revised from 2.9% to 2.3%. Retail Sales (real unadjusted) declined year on year from revised 5.0% to 3.6%, growing at a slower pace than the predicted 3.7%.

French Consumer Spending rose less than expected in February. Data came in at 0.1% compared to forecasts of 0.3% and a previous reading of 0.7%. Year on year consumer spending rose from 2.6% to 3.0%.

Data from Germany, Eurozone's biggest economy, on the Unemployment Change showed a decline by -14,000 in March. Analysts expected a decline by -10,000. The Unemployment Rate came in lower-than expected at 6.4% compared to estimates and a previous reading of 6.5%.

The commodity heavy FTSE 100 index is currently trading +0.11% quoted at 6,898.93 points. Germany's DAX 30 is trading at 12,068.73 points -0.14%. The DAX has risen almost 23% in the first quarter - the most in a quarter since 2003. France's CAC 40 is currently trading at 5,087.65 points, +0.08%.

U.S. stocks rallied on Tuesday rebounding from last week's sharp losses. The S&P 500 closed +1.22% with a final quote of 2,086.24 points. The DOW JONES index added +1.49%, closing at 17,976.31 points - re-approaching the psychologically important 18,000 points mark.

Chinese stocks were trading mixed. Hong Kong's Hang Seng is currently trading +0.25% at 24,917.80 points. China's Shanghai Composite declined moderately to 3,780.14 points closing-0.17%. After the recent strong rally Chinese indices are seen overbought by many investors.

The Nikkei dropped on Tuesday after booking gains early in the session still ending the month in positive territory - a third month in a row. Shares were sold on profit taking at the end of the quarter. The index declined by -1.05% closing at 19,206.99 points.

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

Nikkei 225 19,411.4 +125.77 +0.65 %

Hang Seng 24,855.12 +368.92 +1.51 %

S&P/ASX 200 5,846.09 -73.85 -1.25 %

Shanghai Composite 3,787.69 +96.60 +2.62 %

FTSE 100 6,891.43 +36.41 +0.53 %

CAC 40 5,083.52 +49.46 +0.98 %

Xetra DAX 12,086.01 +217.68 +1.83 %

S&P 500 2,086.24 +25.22 +1.22 %

NASDAQ Composite 4,947.44 +56.22 +1.15 %

Dow Jones 17,976.31 +263.65 +1.49 %