Gold $1,338.4 -12.00 -0.89%

ICE Brent Crude Oil $109.06 -2.14 -1.92%

NYMEX Crude Oil $103.33 -1.38 -1.32%

Nikkei 14,721.48 +69.25 +0.47%

Hang Seng 22,657.63 +156.96 +0.70%    

Shanghai Composite 2,071.47 -3.76 -0.18%   

S&P 1,873.91 +28.18 +1.53%

NASDAQ 4,351.97 +74.67 +1.75%

Dow 16,395.88 +227.85 +1.41%

FTSE 6,823.77 +115.42 +1.72%

CAC 4,395.9 +105.03 +2.45%    

DAX 9,589.15 +230.26 +2.46%

EUR/USD $1,3741 -0,68%

GBP/USD $1,6663 -0,61%

USD/CHF Chf0,8871 +1,57%

USD/JPY Y102,24 +0,78%

EUR/JPY Y140,43 +0,80%

GBP/JPY Y170,26 +0,72%

AUD/USD $0,8948 +0,15%

NZD/USD $0,8386 +0,19%

USD/CAD C$1,1089 +0,13%

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

00:30 Australia Gross Domestic Product (QoQ) February +0.6% +0.7%     

00:30 Australia Gross Domestic Product (YoY) February +2.3% +2.5%     

01:45 China HSBC Services PMI February 50.7         

08:00 United Kingdom Halifax house price index February +1.1% +0.6%     

08:00 United Kingdom Halifax house price index 3m Y/Y February +7.3%         

08:48 France Services PMI (Finally) February 46.9     46.9     

08:53 Germany Services PMI (Finally) February 55.4 55.4     

08:58 Eurozone Services PMI (Finally) February 51.7 51.7     

09:30 United Kingdom Purchasing Manager Index Services February 58.3 58.0     

10:00 Eurozone Retail Sales (MoM) January -1.6%     +0.9%     

10:00 Eurozone Retail Sales (YoY) January -1.0% -0.3%     

10:00 Eurozone Household Consumption (QoQ) Quarter IV +0.1%         

10:00 Eurozone GDP (QoQ) (Revised) Quarter IV +0.3% +0.3%     

10:00 Eurozone GDP (YoY) (Revised) Quarter IV +0.5% +0.5%     

13:15 U.S. ADP Employment Report February 175 159     

15:00 Canada Bank of Canada Rate 1.00% 1.00%     

15:00 Canada BOC Rate Statement                 

15:00 U.S. ISM Non-Manufacturing February 54.0 53.8     

15:30 U.S. Crude Oil Inventories February +0.1         

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

The euro exchange rate against the dollar retreated slightly after previously pair rose to daily highs in early U.S. session . The EUR / USD rose to a maximum of $ 1.3780 on the positive opening of Wall Street , but could not hold the position and retreated to the comfort zone of $ 1.3730 on speculation a small decrease in the rate refi and deposit rates before the ECB meeting on Thursday .

The euro has been associated with easing of tensions around Russia and Ukraine. Recall that today Russian President Putin announced the completion of a series of military exercises in the western part of Russia , and ordered the troops to return to base.

Experts note : growth is also linked to the expectations of the ECB meeting on Thursday and the employment report in the U.S. on Friday . However, before these key events in the euro zone will release GDP figures for the 4th quarter , where the forecast is expected to increase by 0.3%. Improved economic outlook is another argument against further easing by the ECB in the near future. However, economic growth is likely to be fast enough to soon reduce excess capacity , the level of which is overvalued and puts pressure on inflation.

Little impact on the euro was data that showed prices of producers eurozone declined in January, more than expected , which was due to falling energy prices . According to the report , producer prices fell 0.3 percent in January , while offsetting an increase of 0.2 percent, which was recorded in December. Many experts expect that producer prices will remain unchanged. Excluding energy , producer prices rose 0.1 percent after zero change in December. Energy prices fell by 1.4 percent in January , compared with 0.5 per cent increase in the previous month. On an annual basis decline in producer prices accelerated in February to 1.4 percent from 0.8 percent in December . Last change coincided with the estimates of experts.

The yen declined significantly against the U.S. currency , which was associated with comments head Bank of Japan and the President of Russia . Kuroda said that low interest rates in Japan are encouraging investors to use the yen as the base currency for the carry trade . This operation , in which investors borrow low-yielding currencies in buying high-yielding currencies . Head of the Bank of Japan said : It is important to assess whether increased volume of such transactions. In addition to advise the Government of Japan on strategies of public pension funds Takatoshi Ito encouraged the authorities to reduce the country's investment in its own government bonds before accelerate inflation . When the rise in prices closer to the Bank of Japan targetiruemym 2 % per annum, the pension fund will be more difficult to sell Japanese government bonds , according to an expert .

Meanwhile, adding that the Russian president ordered the troops , " located on military exercises " , to return to their base. There was hope that the Crimean conflict is resolved - and the demand for safe haven , which is the yen began to fall. Real possibility of military action is low, but a wave of rumors on this issue stirs market. However, once the situation calms down , will be a new wave of interest in the U.S. dollar, especially given the upcoming employment report .

Pound earlier rose against the U.S. dollar , as a territorial dispute between Ukraine and Russia began to be resolved . Pressure on the currency was presented data that showed that the UK construction sector continued its expansion in February, but sharply slowed its pace of growth in comparison with January , as adverse weather conditions violated activity. This was stated in the report, Markit Economics. According to the index of purchasing managers in the construction sector fell last month to a level of 62.6 points, compared with a 77 - month high in January at around 64.6 points. Many experts expect that this figure will decrease only to 63.6 points. I also add that the index remains above the level of 50.0 points , which separates growth from contraction since last May .

Studies have also found that higher levels of production and new orders led to a further sharp rise in employment and procurement. The number of new jobs has reached three-month high in February. The total purchase price inflation accelerated to a five-month low in January , as the pressure on the "chain" of supplies contributed to the growth of the burden . As a result , the average price charged by subcontractors , increased at a record pace on record .

European stocks rose, rallying the most in eight months, as investors speculated that the military standoff in Ukraine will not lead to war.

The Stoxx Europe 600 Index rose 2.1 percent to 337.15 at the close of trading. The benchmark extended gains after Russian President Vladimir Putin said he sees no need to invade Ukraine and is not considering annexing its Crimea region. The gauge slumped 2.3 percent yesterday after Russia’s parliament granted Putin the authority to use force in Ukraine.

About 16,000 Russian soldiers have blocked airports and main roads on the Crimean peninsula, Yuriy A. Sergeyev, Ukraine’s ambassador to the United Nations, said yesterday in New York. Russia’s ambassador to the UN said that threats posed by extremists legitimized his country’s intervention in Crimea, where Russian speakers make up the majority. The U.S. ambassador to the UN condemned the mobilization and said “there was no evidence of threats against ethnic Russians.”

Putin ended a series of military exercises involving about 150,000 soldiers in western Russia today and ordered the troops back to base, according to a statement from the Kremlin.

National benchmark indexes advanced in every western-European market except Iceland today. France’s CAC 40 and Germany’s DAX rallied 2.5 percent. The U.K.’s FTSE 100 increased 1.7 percent.

Glencore climbed 1.7 percent to 331.9 pence after forecasting that last year’s $29 billion takeover of Xstrata will generate savings in excess of $2.4 billion in 2014. That exceeded an estimate in September of $2 billion. Glencore also said pro-forma adjusted net income fell 23 percent to $4.58 billion, beating Citigroup Inc.’s $4.01 billion projection.

Beiersdorf advanced 2 percent to 73.52 euros after posting net income of 543 million euros in 2013, more than the average analyst estimate of 532.6 million euros. The company also said profitability will increase in 2014. Earnings before interest and tax amounted to 13.2 percent of sales last year.

Ashtead Group jumped 13 percent to 956 pence. The construction-equipment rental company also said Ebitda surged to 162.2 million pounds ($270 million) from 121 million pounds during the three months ending in January.

GAM Holding AG added 3.6 percent to 15.85 Swiss francs as the Zurich-based money manager proposed a payout of 65 centimes per share, exceeding the 60-centime projection calculated by Bloomberg. It also said that earnings per share climbed to 1.26 francs ($1.42) in 2013 from 94 centimes in 2012.

West Texas Intermediate crude dropped from a five-month high as Brent slid amid speculation that tension between Ukraine and Russia, the world’s biggest energy exporter, won’t disrupt oil supplies.

WTI declined as much as 1.6 percent. Russian President Vladimir Putin said there’s no immediate need for the country to invade Ukraine. Military exercises on Ukraine’s eastern border ended on schedule today. Prices also decreased on estimates that U.S. crude inventories rose for a seventh week.

WTI for April delivery slid $1.57, or 1.5 percent, to $103.35 a barrel at 9:52 a.m. on the New York Mercantile Exchange. The contract rose 2.3 percent to $104.92 yesterday, the highest settlement since Sept. 19. The volume of all futures traded was near the 100-day average.

Brent for April settlement dropped $1.98, or 1.8 percent, to $109.22 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $5.87 to WTI, dipping below $6 a barrel for the first time since October. The spread closed at $6.28 yesterday.

Putin told reporters at his residence near Moscow that he reserved the right to use force to protect ethnic Russians, though he said there’s “no such necessity” at present. Troops stationed in Crimea, where Russia keeps its Black Sea fleet, have only been securing their bases, he said. The U.S. and Europe have threatened sanctions against Russia.

WTI climbed yesterday and Brent crude gained 2 percent as escalating tension between Russia and Ukraine spurred concern that supplies from the region would be disrupted.

Russia produced 9.9 million barrels a day of crude oil in 2012 and exported about 5 million, according to the U.S. Energy Information Administration, the Energy Department’s statistical arm. The Yuzhny terminal, which ships Russian oil via the Black Sea, is located near Odessa, Ukraine.

The southern branch of the Druzhba pipeline, which carries about 300,000 barrels a day of Russian crude via Ukraine to refineries in Eastern Europe, is operating normally, according to OAO Transneft, which operates the Russian portion of the line.

U.S. crude inventories probably increased by 1.3 million barrels in the week ended Feb. 28, according to a Bloomberg survey before an EIA report tomorrow. Supplies have expanded the past six weeks to 362.4 million, the highest level in two months.

Gold prices fell almost completely disappeared yesterday's gains , as demand for safe assets today downgraded due to signs that Russia may be trying to avoid further military build-up in the Ukraine.

Yesterday the gold has skyrocketed after the West at the weekend threatened to take measures for the economic isolation of Russia , which increased the risks to the global economy.

However, Russian ruble and the sale of assets stopped on Tuesday, Russian President Vladimir Putin ordered the Russian military who participated in large-scale exercises near the border with Ukraine, to return to their bases . As a result , investors started to withdraw money from the safety of the yen .

Later, Putin said at a press conference that currently sees no need for the use of military in Ukraine.

However, judging by the latest reports coming from the Ukrainian border, two Russian warships blocked the Kerch Strait , which separates from the Kerch Peninsula Russian Taman.

Russian warships have been spotted on the Russian side of the channel.

On Monday, Prime Minister of Russia , Medvedev said that through the Kerch Strait bridge to be built on the basis of previously concluded a transit trade agreement between Russia and Ukraine.

Meanwhile, Russia has agreed to hold talks with NATO on Wednesday after Secretary General Anders Fogh Rasmussen said that the intervention of the country to Ukraine " violates the principles of the UN Charter ."

The cost of the April gold futures on the COMEX today dropped to $ 1331.20 per ounce.

U.S. stock futures rose as comments from Russian President Vladimir Putin signaled the Ukraine crisis won’t immediately escalate.

Global markets:

Nikkei 14,721.48 +69.25 +0.47%

Hang Seng 22,657.63 +156.96 +0.70%

Shanghai Composite 2,071.47 -3.76 -0.18%

FTSE 6,804.77 +96.42 +1.44%

CAC 4,387.26 +96.39 +2.25%

DAX 9,555.29 +196.40 +2.10%

Crude oil $103.77 (-1.10%)

Gold $1333.80 (-1.22%).

USD/JPY Y101.20/25, Y101.50, Y101.90, Y102.00, Y102.25, Y102.30/35, Y102.90, Y103.00

EUR/USD $1.3700, $1.3750, $1.3855

AUD/USD $0.8800, $0.8860, $0.8875, $0.8900, $0.9100

EUR/GBP stg0.8150, stg0.8200, stg0.8300

USD/CAD Cad1.1025, Cad1.1050, Cad1.1100, Cad1.1200

GBP/USD $1.6650, $1.6700, $1.6750, $1.6800, $1.6860, $1.6900

EUR/CHF Chf1.2130, Chf1.2210, Chf1.2250/60

USD/CHF Chf0.8900

AUD/JPY Y89.50, Y91.50

Data

00:30 Australia Building Permits, m/m January -1.3% Revised From -2.9% +0.7% +6.8%

00:30 Australia Building Permits, y/y January +21.8% +34.6%

00:30 Australia Current Account, bln Quarter IV -12.5 Revised From -12.7 -10.1 -10.1

01:30 Japan Labor Cash Earnings, YoY January +0.5% Revised From +0.8% +0.3% -0.2%

03:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50% 2.50%

03:30 Australia RBA Rate Statement

09:30 United Kingdom PMI Construction February 64.6 63.6 62.6

10:00 Eurozone Producer Price Index, MoM January +0.2% 0.0% -0.3%

10:00 Eurozone Producer Price Index (YoY) January -0.8% -1.4% -1.4%

10:30 United Kingdom BOE Deputy Governor for Financial Stability Jon Cunliffe speaks

The euro exchange rate has risen sharply against the U.S. dollar due to the easing of tensions around Russia and Ukraine. Recall that today Russian President Putin announced the completion of a series of military exercises in the western part of Russia , and ordered the troops to return to base.

Experts note : growth is also linked to the expectations of the ECB meeting on Thursday and the employment report in the U.S. on Friday . However, before these key events in the euro zone will release GDP figures for the 4th quarter , where the forecast is expected to increase by 0.3%. Improved economic outlook is another argument against further easing by the ECB in the near future. However, economic growth is likely to be fast enough to soon reduce excess capacity , the level of which is overvalued and puts pressure on inflation.

Little impact on the euro was data that showed prices of producers eurozone declined in January, more than expected , which was due to falling energy prices . According to the report , producer prices fell 0.3 percent in January , while offsetting an increase of 0.2 percent, which was recorded in December. Many experts expect that producer prices will remain unchanged. Excluding energy , producer prices rose 0.1 percent after zero change in December. Energy prices fell by 1.4 percent in January , compared with 0.5 per cent increase in the previous month. On an annual basis , the decline in producer prices accelerated in February, 1.4 per cent from 0.8 per cent in December. Last change coincided with the estimates of experts.

The yen declined significantly against the U.S. currency , which was associated with comments head Bank of Japan and the President of Russia . Kuroda said that low interest rates in Japan are encouraging investors to use the yen as the base currency for the carry trade . This operation , in which investors borrow low-yielding currencies in buying high-yielding currencies . Head of the Bank of Japan said : It is important to assess whether increased volume of such transactions. In addition to advise the Government of Japan on strategies of public pension funds Takatoshi Ito encouraged the authorities to reduce the country's investment in its own government bonds before accelerate inflation . When the rise in prices closer to the Bank of Japan targetiruemym 2 % per annum, the pension fund will be more difficult to sell Japanese government bonds , according to an expert .

Meanwhile, adding that the Russian president ordered the troops , " located on military exercises " , to return to their base. There was hope that the Crimean conflict is resolved - and the demand for safe haven , which is the yen began to fall. Real possibility of military action is low, but a wave of rumors on this issue stirs market. However, once the situation calms down , will be a new wave of interest in the U.S. dollar, especially given the upcoming employment report .

Pound rose slightly against the U.S. dollar , as a territorial dispute between Ukraine and Russia began to be resolved . Pressure on the currency was presented data that showed ritansky construction sector continued its expansion in the month of February, but sharply slowed its pace of growth compared to the month of January , as adverse weather conditions violated activity. This was stated in the report, Markit Economics. According to the index of purchasing managers in the construction sector fell last month to a level of 62.6 points, compared with a 77 -month high in January at around 64.6 points. Many experts expect that this figure will decrease only to 63.6 points. I also add that the index remains above the level of 50.0 points , which separates growth from contraction since last May .

Studies have also found that higher levels of production and new orders led to a further sharp rise in employment and procurement. The number of new jobs has reached three-month high in February.

The total purchase price inflation accelerated to a five-month low in January , as the pressure on the "chain" of supplies contributed to the growth of the burden . As a result , the average price charged by subcontractors , increased at a record pace on record .

EUR / USD: during the European session, the pair rose to $ 1.3774

GBP / USD: during the European session, the pair rose to $ 1.6715 , but then retreated slightly

USD / JPY: during the European session, the pair rose to Y101.95

At 21:30 GMT the United States will become aware of the change in the volume of crude oil according to the API for February. At 22:30 GMT Australia will present the index of activity in the service sector from AiG for February.

EUR/USD

Offers $1.3894, $1.3850/60, $1.3832, $1.3825, $1.3790/800

Bids $1.3710/00, $1.3694, $1.3659-57, $1.3643, $1.3640

GBP/USD

Offers $1.6823, $1.6795/800, $1.6770/80, $1.6760, $1.6720

Bids $1.6640, $1.6617, $1.6605/00, $1.6585/80

AUD/USD

Offers $0.9045/50, $0.9000, $0.8985/90, $0.8967/69

Bids $0.8880, $0.8850, $0.8800

EUR/GBP

Offers stg0.8333, stg0.8300/05, stg0.8267, stg0.82595

Bids stg0.8225/20, stg0.8190-80, stg0.8157, stg0.8150

EUR/JPY

Offers Y141.50, Y141.29, Y141.00, Y140.80, Y140.50

Bids Y139.60/50, Y139.28, Y139.20, Y139.00, Y138.50

USD/JPY

Offers Y102.90/00, Y102.65/70, Y102.45/50, Y102.29, Y102.00

Bids Y101.20, Y101.00, Y100.75/61, Y100.50, Y100.00

European stocks rose, rebounding from their biggest loss in more than five weeks, as investors speculated that the military standoff in Ukraine will not lead to war. U.S. index futures and Asian shares also climbed.

The Stoxx Europe 600 Index rose 1.1 percent to 334.06 at 10:46 a.m. in London. The benchmark dropped 2.3 percent yesterday after Russia’s parliament granted President Vladimir Putin the authority to use force in Ukraine.

U.S. Secretary of State John Kerry arrives in Kiev today. Russia’s ambassador to the United Nations said yesterday that threats posed by extremists legitimized his country’s intervention in Crimea, where Russian speakers make up the majority. The U.S. ambassador to the UN condemned the mobilization as a “response to an imaginary threat.”

Putin ended a series of military exercises in western Russia today and ordered the troops back to base, Interfax reported, citing presidential spokesman Dmitry Peskov.

Glencore climbed 2.6 percent to 334.6 pence after forecasting that last year’s $29 billion takeover of Xstrata will generate savings in excess of $2.4 billion in 2014. That exceeded an estimate in September of $2 billion. Glencore also said adjusted net income rose to $3.67 billion in 2013 from $3.06 billion in 2012.

Beiersdorf advanced 1.5 percent to 73.19 euros after posting net income of 543 million euros in 2013, more than the average analyst estimate of 532.6 million euros. The company also said profitability will increase in 2014. Ebit amounted to 13.2 percent of sales last year.

Ashtead Group jumped 8.2 percent to 915 pence. The construction-equipment rental company also said Ebitda surged to 162.2 million pounds ($271 million) from 121 million pounds during the three months ending in January.

GAM Holding AG added 1.6 percent to 15.55 Swiss francs as the Zurich-based money manager proposed a payout of 65 centimes per share, exceeding the 60-centime projection. It also said that earnings per share climbed to 1.26 francs ($1.43) in 2013 from 94 centimes in 2012.

FTSE 100 6,811.53 +103.18 +1.54%

CAC 40 4,390.01 +99.14 +2.31%

DAX 9,548.39 +189.50 +2.02%

USD/JPY Y101.20/25, Y101.50, Y101.90, Y102.00, Y102.25, Y102.30/35, Y102.90, Y103.00

EUR/USD $1.3700, $1.3750, $1.3855

AUD/USD $0.8800, $0.8860, $0.8875, $0.8900, $0.9100

EUR/GBP stg0.8150, stg0.8200, stg0.8300

USD/CAD Cad1.1025, Cad1.1050, Cad1.1100, Cad1.1200

GBP/USD $1.6650, $1.6700, $1.6750, $1.6800, $1.6860, $1.6900

EUR/CHF Chf1.2130, Chf1.2210, Chf1.2250/60

USD/CHF Chf0.8900

AUD/JPY Y89.50, Y91.50

Asian stocks rose, rebounding from the regional index’s first back-to-back declines in a month, as investors weighed the crisis in Crimea and ahead of the National People’s Congress annual meeting in China starting tomorrow.

Nikkei 225 14,721.48 +69.25 +0.47%

S&P/ASX 200 5,400.23 +15.91 +0.30%

Shanghai Composite 2,071.47 -3.76 -0.18%

Mitsubishi Estate Co. gained 2.2 percent in Tokyo as Japanese developers led the Topix index higher.

Tencent Holdings Ltd., Asia’s biggest Internet company, gained 2.7 percent as Hong Kong shares rebounded from their biggest drop in a month.

AGL Energy Ltd. sank 2.5 percent in Sydney after its A$1.51 billion ($1.35 billion) deal to buy power plants in Australia’s most-populous state was blocked by an antitrust regulator.

00:30 Australia Building Permits, m/m January -1.3% Revised From -2.9% +0.7% +6.8%

00:30 Australia Building Permits, y/y January +21.8% +34.6%

00:30 Australia Current Account, bln Quarter IV -12.5 Revised From -12.7 -10.1 -10.1

01:30 Japan Labor Cash Earnings, YoY January +0.5% Revised From +0.8% +0.3% -0.2%

03:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50% 2.50%

03:30 Australia RBA Rate Statement

The yen weakened against most of its 16 major peers after Bank of Japan Governor Haruhiko Kuroda said there’s momentum for carry trade. There is momentum spurring the yen carry trade, Kuroda said in parliament today, referring to a strategy of borrowing in a low-rate market to fund purchases of higher-yielding assets. The BOJ currently buys about 7 trillion yen ($69 billion) of Japan’s government bonds every month to boost inflation to its 2 percent target through lower borrowing costs.

The yen reached a one-month high yesterday as Russia took control of Ukraine’s Crimea region, spurring demand for safer assets.

Australia’s dollar weakened today after the Reserve Bank left its benchmark interest rate unchanged at a record low to spur domestic industries and offset a slump in mining investment. “The decline in the exchange rate seen to date will assist in achieving balanced growth in the economy, though the exchange rate remains high by historical standards,” RBA Governor Glenn Stevens said in a statement accompanying the decision. He last month refrained from language pointing to the currency trading at a high level.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.3720-40

GBP / USD: during the Asian session the pair fell to $ 1.6640

USD / JPY: during the Asian session, the pair rose to Y101.75

The Ukrainian crisis will continue to dominate headlines on Tuesday, although markets will have a full data calendar to concentrate on, albeit mainly second tier releases. The European calendar gets underway at 0700GMT, with the release of the German fourth quarter wholesale sales data. There is a flurry of monthly car sales data expected throughout the day. At 0800GMT, French February car sales data will be released. German car registration data is also due at some point in the morning session. At 0900GMT, Spanish February net unemployment data will be released, with analysts looking for an increase of 22,000. The German January VDMA machine orders data will be published at the same time. At 1000GMT, EMU January PPI data will be published, seen down 0.1% on month, down 1.3% on year. There is only limited UK data expected, with the February CIPS/Markit Construction PMI data set to cross the wires. Across the Atlantic, the US calendar will kick off with the release of the February Domestic Vehicle Sales. The ICSC-Goldman Store Sales data for the Mar 1 week will be released at 1245GMT, with the Redbook Average for the same period due at 1355GMT. At 1445GMT, the February ISM-NY Business Index will be published, followed at 1500GMT by the release of the March IBD/TIPP Optimism Index. Also at 1500GMT, the Senate Banking Committee had planned to hold confirmation hearings for the Obama Administration's latest Fed appointments, but these have been postponed due to the weather. There is no reserve date yet in place. The White House will release the fiscal year 2014 budget at 1745GMT. There is little in the way of scheduled central bank speak, although Richmond Federal Reserve Bank President Jeffrey Lacker will deliver a speech in New York at 2115GMT.