European stocks advanced the most in four weeks as trading resumed after a four-day weekend and a report showed U.S. factory orders increased in February.

Cyprus Finance Minister Michael Sarris quit the government today after helping clinch the final terms of an international aid agreement to stave off a financial collapse of the island.

Sarris told reporters in Nicosia that he resigned due to a committee set up today to investigate the reasons that led to Cyprus’s economic crisis.

Euro-area manufacturing output contracted less than initially estimated in March. A gauge of manufacturing in the 17-nation bloc declined to 46.8 last month from 47.9 in February, London-based Markit Economics said today. That compared to an initial estimate of 46.6 on March 21. A reading below 50 indicates contraction.

The U.K. economy will avoid another recession and exports will help propel a “modest” recovery this year, according to the British Chambers of Commerce. The BCC’s gauges of domestic and foreign demand at manufacturers and services companies all rose last quarter, the London-based group said in a report, with the export measures close to a record.

National benchmark indexes rose in 14 of the 18 western European markets. The U.K.’s FTSE 100 advanced 1.2 percent, Germany’s DAX climbed 1.9 percent and France’s CAC 40 jumped 2 percent.

Vodafone rose 2.9 percent to 192 pence, after earlier gaining as much as 6.1 percent, as the Financial Times cited talk that Verizon and AT&T are working on a breakup bid for the U.K. group.

FirstGroup, an international passenger company with bus and rail operations, climbed 7.5 percent to 216.1 pence. Bank of America upgraded the shares to buy from underperform, citing the fading probability of equity raising and projecting a 20 percent upside on the shares.

ICAP, the world’s largest broker of transactions between banks, gained 6.1 percent to 308.1 pence as Nasdaq OMX Group Inc. said it will buy eSpeed, the electronic trading system for U.S. Treasuries, from BGC Partners Inc. for about $750 million in cash. ICAP owns BrokerTec, another electronic trading platform for the fixed income markets.

Banca Monte dei Paschi di Siena SpA slipped 2.8 percent to 18 euro cents after it reported a third straight quarterly loss, missing analysts’ estimates, on soaring bad-loan provisions and lower income from lending.

West Texas Intermediate oil fell for a second day on speculation a report will show that U.S. crude supplies rose to the highest level in more than 22 years.

Futures declined as much as 1.2 percent before the release of government data tomorrow that’s projected to show stockpiles climbed by 2.25 million barrels last week, according to a Bloomberg survey of analysts.

U.S. gasoline stockpiles probably slid 1 million barrels last week, according to the median estimate of 10 analysts surveyed by Bloomberg before the Energy Information Administration report tomorrow. Distillate supplies, a category that includes heating oil and diesel, also fell 1 million barrels, the survey showed.

Exxon Mobil Corp. is developing a plan to repair a leak that shut the Pegasus pipeline system, which moves oil to Gulf Coast refineries from the central U.S.

Exxon’s 96,000 barrel-a-day Pegasus pipeline line was shut after a leak was discovered March 29 in Arkansas. The line runs 940 miles (1,512 kilometers) from Patoka, Illinois, to Nederland, Texas, and serves refineries around Port Arthur and Beaumont on the Gulf Coast near Texas’ border with Louisiana.

Oil futures also fell after the euro dropped as much as 0.3 percent against the dollar, curbing the appeal of raw materials denominated in the U.S. currency as an investment.

The jobless rate in the 17-nation euro-area rose to a record 12 percent in February and the January figure was revised up to the same level from a previous estimate of 11.9 percent, the European Union’s statistics office in Luxembourg said today. That’s the highest level in data going back to 1995 and matches the median forecast in a survey of economists.

WTI oil for May delivery dropped to $95.91 a barrel on the New York Mercantile Exchange.

Brent for May settlement decreased 35 cents, or 0.3 percent, to $110.73 a barrel on the London-based ICE Futures Europe exchange.

Gold cheaper pressure of the strong dollar against the depreciation of the euro and the pound. The European currency fell after weak data on manufacturing activity in the region.

Activity in the eurozone manufacturing sector declined in March, the fastest pace in three months as new orders. According to the presented data on Tuesday, purchasing managers' index (PMI) for the manufacturing eurozone in March fell to 46.8, its lowest level since December, compared with 47, 9 in February. Index values ​​below 50 indicate a decrease in activity. The preliminary purchasing managers' index (PMI) for the manufacturing eurozone in March, presented by Markit, was equal to 46.6.

Published data are further evidence of reduction of euro area GDP in the first three months of 2013, which means continued economic recession, for 15 months. In this light, hope the leaders of the euro area at the beginning of economic recovery in the near future looks uncertain.

At the same time, the purchasing managers' index (PMI) for the manufacturing of Great Britain in March rose to 48.3 against 47.9 in December. In Markit also reported that the average index for the manufacturing PMI in the UK 1st quarter was equal to 49.0 compared to 49.2 in the 4th quarter of 2012. More negative than expected, the data make it more likely that the Bank of England on Thursday in a meeting to decide to increase the bond-purchase program, known as quantitative easing.

Support the dollar was promzakazy growth data in the U.S.. According to the report, the volume of industrial orders in the U.S. rose in February by 3.0% to U.S. $ 491.98 billion, offsetting a decline of 1% in January. The data for January were revised. U.S. manufacturing sector in February, continued its growth faltering, as the volatility of different defense industry and aerospace industry, to ensure the overall growth, despite slow or weak improvement in other categories. Decline in orders for chemical products, machinery and equipment, and computers were more than offset by the increase in demand for commercial aircraft and parts twice, and jump defense contracts by 72.6%.

Cost June gold futures on the COMEX today dropped to 1579.6 dollars per ounce.

EUR/USD $1.2600, $1.2675, $1.2800, $1.2875, $1.2950

USD/JPY Y92.50, Y94.35, Y94.00, Y94.15, Y94.35, Y94.50

GBP/USD $1.5200

EUR/CHF Chf1.2260

Downgrades:

Exxon Mobil (XOM) downgraded to Perform from Outperform at Oppenheimer, target $100

Goldman Sachs (GS) downgraded to Neutral from Buy at BofA/Merrill

Other:

eBay (EBAY) reiterated at Neutral at Compass Point, target raised from $50 to $66

UnitedHealth (UNH) target was lowered to $71 from $67 at Jefferies

Goldman Sachs (GS) target was raised to $180 from $160 at Credit Suisse  

Data

01:30 Japan Labor Cash Earnings, YoY February -0.1% -0.1% -0.7%

03:00 Australia Announcement of the RBA decision on the discount rate April 3.00% 3.00% 3.00%

03:00 Australia RBA Rate Statement April

05:30 Australia RBA Commodity prices, y/y March -6.5% -7.5%

07:30 Switzerland Manufacturing PMI March 50.8 50.5 48.3

07:50 France Manufacturing PMI (Finally) March 43.9 43.9 44.0

07:55 Germany Manufacturing PMI (Finally) March 48.9 48.9 49.0

08:00 Eurozone Manufacturing PMI (Finally) March 46.6 46.6 46.8

08:30 United Kingdom Purchasing Manager Index Manufacturing March 47.9 48.9 48.3

08:30 United Kingdom Net Lending to Individuals, bln February 0.6 0.9 1.5

08:30 United Kingdom Mortgage Approvals February 54.2 53.6 51.6

09:00 Eurozone Unemployment Rate February 12.0% 12.0% 12.0%

12:00 Germany CPI, m/m (Preliminary) March +0.6% +0.4% +0.5%

12:00 Germany CPI, y/y (Preliminary) March +1.5% +1.3% +1.4%

The euro fell against the dollar after the presented statistical office Eurostat data showed that the unemployment rate in the euro area remained unchanged in February, and was in line with economists' forecasts. Note that, given the upward revision in the Jan to the level of 12.0%, the unemployment rate in February remained unchanged. Add that last figure in line with expectations of economists, and was slightly higher than originally reported in January (11.9%). We also recall that in February 2012, the unemployment rate was 10.9%. Among the Member States, the lowest unemployment rates were recorded in Austria (4.8%), Germany (5.4%), Luxembourg and the Netherlands, and the highest rates are seen in Greece (26.4%), Spain (26, 3%), and Portugal. In addition, the report showed that the unemployment rate in the European Union amounted to 10.9% in February, compared to 10.8% in January. A year earlier, the unemployment rate in the EU was 10.2%.

The pound fell for the first time in four days against the dollar after a report showed that the UK recession in the manufacturing sector continued last month, but the rate of decline of activity was less significant than in the previous month. According to the report, the Purchasing Managers' Index for the manufacturing sector rose last month to the level of 48.3, while recovering from a four-month low at 47.9, which was recorded in February. However, despite this improvement, the value of this indicator was less than the average forecast of experts at 48.9. Meanwhile, data showed that production at factories Britain had dropped significantly, demonstrating the biggest decline since October last year, while the rate of decline in the number of new orders slowed slightly compared to the previous month.

The yen fell against the dollar in anticipation of the two-day meeting of the Bank of Japan, which will start from tomorrow. Also on this momentum effect concerns related to the position of Prime Minister Shinzo Abe, who said at the parliament that the Bank of Japan should not "sacrifice everything" to achieve the inflation target of 2%. Experts believe that such statements are a signal that the support of the economy will be less active than previously thought. Recall that in this month the Bank of Japan will hold two meetings. The next meeting of the Board of the Central Bank of voting is scheduled for April 26.

The Australian dollar rose after the Reserve Bank of Australia today kept its benchmark interest rate unchanged at 3 per cent, the lowest level in 50 years. Meanwhile, experts said that given the fact that the costs are recovered, there is room for further rate cuts. Commenting on his decision regarding the conservation rate, head of the bank Glenn Stevens said that there are some signs that a substantial easing of monetary policy in late 2011 and 2012, has expansionist economic impact. He added that the outlook for inflation, according to the present time, you can continue easing, if necessary, to support demand.

EUR / USD: during the European session the pair fell to $ 1.2823

GBP / USD: during the European session the pair fell to $ 1.5160

USD / JPY: during the European session, the pair rose to the level of Y93.35

At 14:00 GMT the United States will report on changes in the volume of production orders for February.

EUR/USD

Offers $1.2930/50, $1.2920, $1.2900/10, $1.2880/90

Bids $1.2800, $1.2780/70, $1.2755/50, $1.2735/25

GBP/USD

Offers $1.5315/20, $1.5300, $1.5280

Bids $1.5155/50, $1.5125/20, $1.5100/90, $1.5070

AUD/USD

Offers $1.0575/80, $1.0550, $1.0520/30, $1.0485/90, $1.0475/80

Bids $1.0410/00, $1.0390/85, $1.0365/60, $1.0355/50

EUR/JPY

Offers Y121.20/30, Y121.00, Y120.50, Y120.00

Bids Y119.45/40, Y119.00, Y118.50, Y118.20, Y118.00

USD/JPY

Offers Y94.00, Y93.75/80, Y93.50

Bids Y92.60/50, Y92.45/40, Y92.00, Y91.50

EUR/GBP

Offers stg0.8555/65, stg0.8510, stg0.8500, stg0.8475/85, stg0.8455

Bids stg0.8410/00, stg0.8395/90, stg0.8365/60

European stocks advanced to a one- week high as trading resumed after a four-day weekend and investors awaited a report that may show factory orders in America gained. U.S. index futures rose while Asian shares were little changed.

The Stoxx Europe 600 Index (SXXP) climbed 0.7 percent to 295.74 at 10 a.m. in London. The gauge soared 5 percent in the first quarter as U.S. lawmakers agreed on a compromise budget and optimism grew that central banks around the world will continue stimulus measures to support economic recovery.

Vodafone rose 4.1 percent to 194.15 pence as the Financial Times cited talk that Verizon Communications Inc. and AT&T Inc. are working on a breakup bid for the U.K. group. A measure of European telecommunications companies advanced the most of the 19 industry groups on the Stoxx 600.

FirstGroup, an international passenger company with bus and rail operations, advanced 7.5 percent to 216.2 pence. Bank of America upgraded the shares to buy from underperform, citing the fading probability of equity raising and projecting a 20 percent upside on the shares.

ICAP, the world’s largest broker of transactions between banks, gained 7.9 pence to 313.4 pence as Nasdaq OMX Group Inc. said it will buy eSpeed, the electronic trading system for U.S. Treasuries, from BGC Partners Inc. for about $750 million in cash.

Hellenic Bank, Cyprus’ third-largest lender, fell 3 euro cents to 13.4 cents.

Banca Monte dei Paschi di Siena SpA slumped 10 percent to 16.6 euro cents after it reported a third straight quarterly loss, missing analysts’ estimates, on soaring bad-loan provisions and lower income from lending.

At the moment:

FTSE 100 6,466.72 +54.98 +0.86%

CAC 40 3,754.54 +23.12 +0.62%

DAX 7,848.78 +53.47 +0.69%

EUR/USD $1.2600, $1.2675, $1.2875

USD/JPY Y92.50, Y94.35, Y94.50

EUR/CHF Chf1.2260

AUD/USD $1.0350, $1.0420

01:30 Japan Labor Cash Earnings, YoY February -0.1% -0.1% -0.7%

03:00 Australia Announcement of the RBA decision on the discount rate April 3.00% 3.00% 3.00%

03:00 Australia RBA Rate Statement April

The dollar weakened past 93 yen for the first time in a month before data this week forecast to show the recovery in the U.S. job market isn’t fast enough to prompt the Federal Reserve to reduce monetary stimulus. Companies in the U.S. probably added 200,000 jobs last month after an increase of 198,000 in February, economists forecast in a Bloomberg News survey before ADP Research Institute releases the data tomorrow. Government figures on April 5 are likely to show that the jobless rate was 7.7 percent in March, unchanged from the prior month, according to another poll.

The yen reached a five-week high against the euro as investors weighed the chances of new stimulus from the Bank of Japan at a two-day meeting starting tomorrow. Japanese Prime Minister Shinzo Abe said today in parliament that the central bank shouldn’t pursue a 2 percent inflation target “at all costs” and may fail to achieve it should global conditions change. BOJ Governor Haruhiko Kuroda said today the central bank will do whatever it can to beat deflation and that it will conduct bold monetary easing. He spoke in parliament before leading his first policy meeting since taking over from Masaaki Shirakawa last month. The BOJ board will convene twice this month, with another meeting scheduled on April 26.

Australia’s dollar extended a gain even after the nation’s Reserve Bank held interest rates unchanged and signaled that existing stimulus is working. Reserve Bank of Australia Governor Glenn Stevens and his board today left the overnight cash-rate target at 3 percent, which was was predicted by all 28 economists surveyed by Bloomberg.

EUR / USD: during the Asian session, the pair rose to $ 1.2880.

GBP / USD: during the Asian session, the pair rose to $ 1.5230.

USD / JPY: during the Asian session the pair fell to Y92.55.

European markets are back from the Easter vacation and a full data calendar awaits, with the eurozone manufacturing PMI numbers set to dominate. Also expected Tuesday are the German flash HICP numbers. Other early releases include France March car registrations and Spain Mar unemployment numbers, both at 0700GMT. The manufacturing PMI numbers start from 0713GMT with the release of the Spanish data, followed by Italian numbers at 0743GMT, the French data at 0748GMT and German numbers at 0753GMT. Overall eurzone numbers are set for release at 0758GMT, with analysts looking for a number of 46.6, unchanged on previous. Eurozone unemployment numbers are expected at 0900GMT. However, release today of UK mfg PMI data at 0828GMT will provide the key domestic data on the day with most expecting a pessimistic reading. UK borrowing data also due at 0830GMT.

Change % Change Last

GOLD 1,600.20 -0.70 -0.04%

OIL 96.94 -0.13 -0.13%

Change % Change Last

Nikkei 225 12,135.02 -262.89 -2.12%

Hang Seng 22,299.63 -165.19 -0.74%

S&P/ASX 200 4,966.5 -28.49 -0.57%

Shanghai Composite 2,234.4 -2.23 -0.10%

FTSE 100 Closed

CAC 40 Closed

DAX Closed

DJIA 14,572.80 -5.69 -0.04%

S&P 500 1,562.17 -7.02 -0.45%

NASDAQ 3,239.17 -28.35 -0.87%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2843 +0,20%

GBP/USD $1,5226 +0,15%

USD/CHF Chf0,9467 -0,27%

USD/JPY Y93,19 -1,08%

EUR/JPY Y119,68 -0,89%

GBP/JPY Y141,88 -0,90%

AUD/USD $1,0424 +0,07%

NZD/USD $0,8378 +0,12%

01:30 Japan Labor Cash Earnings, YoY February -0.1% -0.1% -0.7%

03:00 Australia Announcement of the RBA decision on the discount rate April 3.00% 3.00% 3.00%

03:00 Australia RBA Rate Statement April

05:30 Australia RBA Commodity prices, y/y March -7.2%

07:00 United Kingdom Halifax house price index March +0.5% +0.2%

07:00 United Kingdom Halifax house price index 3m Y/Y March +1.9% +1.1%

07:30 Switzerland Manufacturing PMI March 50.8 50.5

07:50 France Manufacturing PMI (Finally) March 43.9 43.9

07:55 Germany Manufacturing PMI (Finally) March 48.9 48.9

08:00 Eurozone Manufacturing PMI (Finally) March 46.6 46.6

08:30 United Kingdom Purchasing Manager Index Manufacturing March 47.9 48.9

08:30 United Kingdom Net Lending to Individuals, bln February 0.6 0.9

08:30 United Kingdom Mortgage Approvals February 54.7 53.6

09:00 Eurozone Unemployment Rate February 11.9% 12.0%

12:00 Germany CPI, m/m (Preliminary) March +0.6% +0.4%

12:00 Germany CPI, y/y (Preliminary) March +1.5% +1.3%

14:00 U.S. Factory Orders February -2.0% +3.1%

16:20 Canada Gov Council Member Murray Speaks April

20:30 U.S. API Crude Oil Inventories March +3.7