The yen rose against the dollar, departing from its lowest level in nearly four years on speculation that the decline of 6.4 percent in the last three days was too fast. The Japanese currency rose against all but one of its 16 major counterparts after the earlier fell to 99.66 per dollar, its lowest level since May 2009. Recall that the leaders of the Bank of Japan, headed by Governor Haruhiko Kuroda said after a meeting last week announced that they will raise the monthly purchase of bonds by 7.5 trillion yen, as they have set a period of two years to achieve its goal of 2 % inflation.

The euro rose to a three-week high against the U.S. dollar as the fact that the European Financial Stability Fund said that the sale of bonds was recorded in high demand. As it became known, the fund sold five-year bonds in the amount of EUR 8 billion, while the volume of supply of 14 billion euros.

The British pound rose after data showed that UK industrial production rose in February more than expected, which means that the decreased risk of returning the economy back into recession in the 1st quarter of 2013. National Bureau of Statistics said Tuesday that the growth of industrial production in February by 1% compared to the previous month. Growth contributed to the restoration of oil and gas, the growth in the mining industry and the growth in the energy sector caused by the cold weather. Manufacturing production increased over the same period by 0.8%.

The Australian currency is growing a second day, as the monetary stimulus in the U.S. and Japan have increased the demand for higher-yielding assets. Also contributed to the increase in the inflation data in China that showed a slowdown in the growth of the consumer price index, which weakened the excitement about a possible tightening of monetary policy by the government. Thus, the index of consumer prices in March fell by 0.9% m / m while the forecast decrease by only 0.6% m / m and a rise of 1.1% m / m, while compared to the previous year index increased by 2 1%, while analysts expected a more significant increase of 2.4% y / y growth of 3.2% y / ya month earlier.

European (SXXP) stocks climbed as mining shares rallied and Alcoa Inc. began the U.S. earnings season with profit that beat analysts’ estimates.

The Stoxx Europe 600 Index added 0.2 percent to 288.07 at the close of trading.

German exports fell in February more than economists forecast. Overseas shipments, adjusted for working days and seasonal changes, dropped 1.5 percent from January, when they gained 1.3 percent, the Federal Statistics Office in Wiesbaden said today. Economists forecast a 0.3 percent decline.

National benchmark indexes climbed in 15 of the 18 western European markets.

FTSE 100 6,313.21 +36.27 +0.58% CAC 40 3,670.72 +3.94 +0.11% DAX 7,637.51 -25.13 -0.33%

BHP added 3.5 percent to 1,944 pence and Rio Tinto rallied 4.8 percent to 3,135 pence as copper prices rose 2.3 percent in London. Kazakhmys Plc jumped 5.6 percent to 393.5 pence.

Aurubis AG, the second-largest refined copper producer, gained 6 percent to 48.35 euros, its biggest advance since July 19, after Chief Executive Officer Peter Willbrandt said orders in the U.S. are rebounding and European demand is slowly improving.

Repsol SA advanced 3 percent to 16.53 euros after spokesman Kristian Rix said the Spanish company encountered a 50-meter column of gas in the Sud-Est Illizi block in Algeria.

Lagardere slipped 2.6 percent to 27.79 euros after the Paris-based media company sold 61 million shares, or a 7.4 percent stake, in EADS for about 2.3 billion euros ($3 billion). EADS slid 2.8 percent to 37.62 euros.

Adecco SA, the biggest supplier of temporary workers, retreated 1.8 percent to 49.49 francs. Credit Suisse downgraded the shares to neutral from outperform, citing a slowdown in the U.S. and challenging market conditions in Europe for staffing companies.

Oil prices fell slightly, while Brent crude oil price down below $ 105 per barrel, close to eight-month low, as investors worried that the global growth faltering and the recession in some developed countries will increase the demand for energy, and will increase the global supply.

Also add that the rise in oil prices also contributed to concerns about rising tensions in North Korea and the impasse in the negotiations between Iran and the West, as well as concerns about possible disruption of fuel supplies from the Middle East.

Meanwhile, we note that some support oil have data on inflation in China, which can help strengthen the demand side of the second largest oil consumer in the world. According to the report, annual consumer inflation in China slowed in March to 2.1% from 3.2% in February, while the producer price deflation deepened.

Note also that the oil markets are waiting for data on U.S. crude inventories for the week ended April 5. Recall that the report, which was submitted last week, showed a marked increase in inventories, which contributed to the fall in prices to eight-month low.

May futures for U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 93.17 dollars per barrel.

May futures price for North Sea petroleum mix of mark Brent rose to $ 104.97 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices rose sharply, rising at the same time above $ 1580, helped by the further weakening of the U.S. currency. Meanwhile, experts say that now in the market there is a marked correction after prices last week reached a 10-month low.

They also point out that the positive Chinese inflation data helped the euro, dropped while the dollar. This has contributed to the growth of interest in the assets, which are expressed in terms of the dollar, to which the right is gold.

Note also that many investors still remain cautious with respect to the metal, however, after prices fell sharply last week, gold is struggling to regain the lost ground that was lost after weak employment data in the U.S..

Meanwhile, we note that many traders will be watching tomorrow's publication of protocols FOMC, as they can provide a hint about the future of U.S. monetary policy, and in particular, any change in the policy of quantitative easing.

Also today it was announced that UBS and Deutsche Bank lowered its target prices for gold this year to $ 1,740 an ounce from $ 1,900, and 12% up to $ 1,637 per ounce, respectively.

May futures on COMEX gold rose today, and now stands at 1586.60 dollars per ounce.

Inventories at U.S. wholesale businesses dropped in February as businesses trimmed stockpiles of petroleum, farm products and pharmaceuticals.

U.S. wholesalers' inventories declined by 0.3% from the prior month to a seasonally adjusted $501.36 billion, the Commerce Department said Tuesday. Economists had forecast a 0.6% increase in inventories during February.

The change in February inventories is the biggest decline since September 2011 and suggested businesses drew down their stocks to meet rising demand. Wholesale inventories rose by a revised 0.8% in January.

Sales at the wholesale level rose 1.7% in February, as businesses sold more computer equipment and nondurable goods. Petroleum sales rose the most since June 2008. Sales of durable goods, including cars and machinery, rose 0.4% during the month.

Wholesalers account for about one-third of all business inventories in the U.S., with manufacturers and retailers making up the rest. Total private inventories were a drag on modest overall economic growth in the fourth quarter of 2012, the Commerce Department said last month.

Many economists say the change in inventories this year will likely be positive for first-quarter growth because stockpiles in the automotive sector and elsewhere were relatively low at the end of last year.

The amount of wholesale goods on hand relative to sales in February was 1.19 compared with 1.21 the prior month. The ratio measures how many months it would take for a firm to reduce its current inventory.

EUR/USD $1.2950, $1.3000, $1.3035, $1.3050, $1.3060

USD/JPY Y97.00, Y98.00, Y98.75, Y99.00, Y99.25, Y100.00

GBP/USD $1.5225, $1.5300

GBP/JPY Y151.00

USD/CHF Chf0.9300

EUR/CHF Chf1.2210

AUD/USD $1.0325, $1.0330, $1.0350, $1.0380, $1.0400, $1.0450

EUR/AUD  A$1.2450, A$1.253

Switzerland's unemployment rate remained unchanged at seasonally adjusted 3.1 percent in March, the State Secretariat for Economic Affairs said Tuesday. The rate came in line with economists' expectations.

However, on an unadjusted basis, the jobless rate fell to 3.2 percent from 3.4 percent a month ago.

The number of registered unemployed fell 7,008 from the prior month to 138,993, it said. Compared to the same period of last year, unemployment rose 12,601 in March. At the same time, youth unemployment decreased by 1,723 persons on month to 18,802.

U.S. stock futures rose as data showed Chinese inflation slowed more than forecast.

Global Stocks:

Nikkei  13,192.35 -0.24 0.00%

Hang Seng 21,870.34 +152.29 +0.70%

Shanghai Composite 2,225.77 +14.18 +0.64%

FTSE  6,309.18 +32.24 +0.51%

CAC  3,684.98 +18.20 +0.50%

DAX 7,681.5 +18.86 +0.25%

Crude oil $93.48 +0.13%

Gold $1575.40 +0.18%

Chinese inflation eased sharply in March after climbing to a ten-month high in February, as seasonal increases in food prices receded, the latest figures from the National Bureau of Statistics showed Tuesday.

The consumer price index rose 2.1 percent year-on-year in March, slower than the 3.2 percent rise in February. Economists expected the rate of inflation to ease to 2.5 percent.

Food prices increased 2.7 percent annually in March, much slower than the 6 percent rise reported in February, when food costs were pushed up due to Lunar New Year festivities.

Non-food prices rose 1.8 percent and housing costs gained 2.9 percent from the same month last year. Clothing prices increased 2.3 percent compared to a 2.2 percent increase in utility costs. Meanwhile, transportation costs fell 1.2 percent.

Separately, the statistical office reported that the producer price index fell 1.9 percent year-on-year in March, in line with expectations. In February, the PPI was down 1.6 percent.

Meanwhile, several local governments in China are preparing to implement fresh property curbs this month to rein in house prices. Beijing has already imposed curbs by increasing the down payment for second home buyers.

Weak economic activity last year kept inflation in check throughout the period and this allowed the People's Bank of China to reduce interest rate twice last year to support the economy. The country's growth slumped to a 13-year low 7.8 percent in 2012.

However, the economy ended seven quarters of slowdown in the fourth quarter of 2012, with the gross domestic product growing 7.9 percent.

In a report released today, the Asian Development Bank said that it expects inflation in China to remain muted in 2013. The government has an inflation target of 4 percent for this year.

The lender forecasts strong consumption and fiscal spending to fuel a rebound in growth in 2013, though government steps to cool pressures on the environment and to narrow income gaps will limit the upside in 2014. ADB forecasts GDP growth of 8.2 percent for 2013 and 8 percent for 2014.

Canadian building permits rose at a slower-than-expected rate in February as planned residential construction declined for the ninth time in 12 months, suggesting developers are taking on fewer new projects as the housing market cools.

The overall value of building permits issued by Canadian municipalities grew 1.7% to 5.95 billion Canadian dollars ($5.85 billion), supported by gains in the non-residential sector, Statistics Canada said Tuesday. Permits were down 8.5% year-on-year.

The consensus call was for a 3% monthly increase, according to a report from Royal Bank of Canada. The prior month's gain was revised a tad higher to 1.8% from 1.7%.

The data, which provide an early indication of building activity, is based on a survey of 2,400 municipalities representing 95% of the country's population.

Other:

Boeing (BA) target raised to $96 at Argus

Canadian housing starts increased 0.4% in March to an annual rate of 184,028 units, Canada Mortgage and Housing Corp. said Tuesday.

The March rate was up from a revised 183,207 units in February and well ahead of the 176,000 analysts polled by Dow Jones were expecting.

"The trend in total housing starts continued to moderate in March. Builders are adjusting to lower housing demand and as a result, completed and unoccupied units per capita remain relatively close to their historical average," CMHC said in a statement.

In March, urban starts were down 2.7% to 157,217 units. Urban single starts fell 6.6% to 60,558 units, while multiple urban starts were little changed at 96,659 units.

The seasonally adjusted annual rates of urban starts in March fell 15.7% in Ontario and 13.5% in Quebec. Urban starts were up 27.1% in Atlantic Canada, 13.8% in the Prairies and 13.1% in British Columbia.

Rural starts were estimated at a seasonally adjusted annual rate of 26,811 units in March.

EUR/USD

Offers $1.3130, $1.3100/15, $1.3070/80

Bids $1.3000, $1.2995/90, $1.2970/60, $1.2940, $1.2900

GBP/USD

Offers $1.5390/400, $1.5350/65, $1.5320/25

Bids $1.5255/45, $1.5215/10, $1.5200-1.5195, $1.5160/50

AUD/USD

Offers $1.0550, $1.0520, $1.0510, $1.0500, $1.0475/80

Bids $1.0405/00, $1.0380, $1.0350/50, $1.0320

EUR/GBP

Offers stg0.8630/40, stg0.8610/15, stg0.8600/05, stg0.8580/85, stg0.8560/65

Bids stg0.8500, stg0.8485/80, stg0.8460/50, stg0.8410/00

EUR/JPY

Offers Y130.50, Y130.00, Y129.70, Y129.55/60

Bids Y128.05/00, Y127.75/70, Y127.50, Y127.00

USD/JPY

Offers Y100.00, Y99.75, Y99.45/50

Bids Y98.50, Y98.00

European stocks climbed as Alcoa Inc. began the U.S. earnings season with profit that beat estimates and as Chinese inflation rose less than forecast.

Alcoa, the largest U.S. aluminum producer, late yesterday posted first-quarter earnings excluding an income-tax benefit and other one-time items of 11 cents a share, beating the 8 cent-average analyst forecast.

German exports fell in February more than economists forecast. Overseas shipments, adjusted for working days and seasonal changes, dropped 1.5 percent from January, when they gained 1.3 percent, the Federal Statistics Office in Wiesbaden said today. Economists forecast a 0.3 percent decline, according to the median of 15 estimates in a survey.

U.K. manufacturing rose twice as much as economists forecast in February. Factory output increased 0.8 percent from January, when it fell a revised 1.9 percent, the Office for National Statistics said today in London. The median forecast of 29 economists in a survey was for a gain of 0.4 percent. Overall industrial output rose 1 percent in February, also exceeding the estimate of economists.

BHP added 2.5 percent to 1,925.5 pence and Rio Tinto rallied 3.9 percent to 3,109 pence as copper prices rose 1.2 percent in London. Kazakhmys Plc jumped 4.6 percent to 389.6 pence.

Repsol SA advanced 2.7 percent to 16.49 euros after spokesman Kristian Rix said the Spanish company encountered a 50-meter column of gas in the Sud-Est Illizi block in Algeria.

ICAP Plc lost 3 percent to 283.8 pence in London. The Commodity Futures Trading Commission has issued subpoenas to ICAP brokers and as many as 15 Wall Street banks as part of an investigation into possible price manipulation of benchmark interest-rate swaps, people familiar with the matter said late yesterday. The world’s largest interbank broker said today that it’s cooperating with the CFTC in a wider inquiry and investigating the allegations.

FTSE 100 6,302.07 +25.13 +0.40%

CAC 40 3,688.77 +21.99 +0.60%

DAX 7,682.43 +19.79 +0.26%

U.K. industrial production recovered at a faster than expected pace in February, the Office for National Statistics said Tuesday.

Industrial output grew 1 percent in February from a month ago, when it was down 1.3 percent. The rate of growth exceeded a 0.4 percent rise forecast by economists.

Likewise, manufacturing output advanced 0.8 percent month-on-month, partially offsetting the 1.9 percent decrease in January. It was forecast to grow 0.4 percent.

On a yearly basis, both industrial and manufacturing output continued its negative trend in February. Industrial production slipped 2.2 percent, following January's 3.1 percent fall. Similarly, manufacturing output was down 1.4 percent, smaller than the 3.3 percent drop seen in January.

German exports contracted at a faster-than-expected pace in February as deep recession in the euro area weighed on demand for goods from the largest economy in the bloc.

Exports of goods declined a calendar-and-seasonally adjusted 1.5 percent month-on-month to EUR 90.4 billion in February, after rising 1.3 percent in January, the Federal Statistical Office said Tuesday. Economists had forecast a more modest decline of 0.3 percent for February.

Year-on-year, shipments fell by 2.8 percent in February, on a unadjusted basis, partially offsetting January's 3 percent increase.

Demand from euro area dropped 4.1 percent annually and imports from the 17-nation bloc were down 5.7 percent. Exports to the EU countries decreased by 3.4 percent.

The value of imports fell at a significantly faster rate of 3.8 percent monthly than the 0.1 percent decline economists had forecast and reversed January's 3.3 percent increase. Compared to February 2012, external purchases recorded a 5.9 percent decline, reversing January's 2.9 percent growth.

The net trade in February, on an unadjusted basis, resulted in a surplus of EUR 16.8 billion in February, higher than the EUR 14.9 billion surplus recorded a year earlier.

At the same time, provisional results of the Deutsche Bundesbank showed that the current account surplus increased to EUR 16 billion in February from EUR 13.5 billion in the same month a year earlier. Economists were looking for a surplus of EUR 14.2 billion.

The Purchasing Managers' survey for the month of March compiled by Markit Economics showed that Germany's private sector activity reached near-stagnation levels, with new orders dropping for the first time so far this year.

Although exports and imports declined in February, data from economy ministry revealed yesterday that industrial production increased 0.5 percent on rising manufacturing output, lifting hopes of recovery.

Added that the Outlook is Stable. The short-term foreign currency IDR was affirmed at 'F1' and the country ceiling at 'A+'.

EUR/USD $1.2950, $1.3000, $1.3050, $1.3060

USD/JPY Y97.00, Y98.00, Y98.75, Y99.00, Y99.25, Y100.00

GBP/USD $1.5225, $1.5300

GBP/JPY Y151.00

USD/CHF Chf0.9300

EUR/CHF Chf1.2210

AUD/USD $1.0325, $1.0330, $1.0350, $1.0380, $1.0400, $1.0450

Asian stocks rose, led by commodity producers, as Chinese inflation rose less than economists forecast, damping concern that the nation’s central bank will need to tighten monetary policy.

Nikkei 225 13,192.35 -0.24 0.00%

Hang Seng 21,891.65 +173.60 +0.80%

S&P/ASX 200 4,976.84 +71.35 +1.45%

Shanghai Composite 2,225.77 +14.18 +0.64%

BHP Billiton Ltd., the biggest mining company, posted the longest streak of gains in two months as metal prices rose.

Alumina Ltd. gained 5 percent in Sydney after its joint-venture partner Alcoa Inc. reported first-quarter earnings that exceeded analysts’ estimates.

Sundance Resources Ltd. tumbled 48 percent after terminating an agreement with Sichuan Hanlong Group following the Chinese company’s failure to secure funding for its A$1.14 billion ($1.18 billion) bid to buy the rest of the Australian iron-ore miner.

01:30 Australia National Australia Bank's Business Confidence March 1 2

01:30 China PPI y/y March -1.6% -1.8% -1.9%

01:30 China CPI y/y March +3.2% +2.5% +2.1%

The dollar and yen dropped against most major peers as traders estimated policy makers in the U.S. and Japan will maintain or expand monetary stimulus measures.

The greenback fell for a fifth day versus the euro after Federal Reserve Chairman Ben S. Bernanke said economic conditions aren’t where he’d like them to be. Bernanke said yesterday that Fed tests of whether U.S. financial companies could survive a severe recession have strengthened the banking system and aided economic growth. “Today the economy is significantly stronger than it was four years ago, although conditions are clearly still far from where we would all like them to be,” he said in a speech in Stone Mountain, Georgia.

The yen slid to a more than three-year low against the euro as Japan’s Prime Minister Shinzo Abe said currency movements are having an overall positive impact. The yen plunged 6.4 percent in the previous three days versus the dollar, the most since 1988, after the Bank of Japan took unprecedented easing steps. The yen hasn’t been at 100 per dollar since April 2009. The currency’s 14-day relative strength index against the greenback was at 27, below the 30 level that some traders see as a sign an asset’s price has fallen too fast.

EUR / USD: during the Asian session, the pair rose to $ 1.3070.

GBP / USD: during the Asian session, the pair rose to $ 1.5280.

USD / JPY: during the Asian session, the pair rose to Y99.70, but fell to Y99.05 later.

Change % Change Last

GOLD 1,573.60 -2.30  -0.15%

OIL 93.48 +0.78 +0.84%

Change % Change Last

Nikkei 225 13,192.59 +358.95 +2.80%

Hang Seng 21,743.38 +16.48 +0.08%

S&P/ASX 200 4,905.5 +14.07 +0.29%

Shanghai Composite 2,211.59 -13.70 -0.62%

FTSE 100 6,276.94 +27.16 +0.43%

CAC 40 3,666.78 +3.30 +0.09%

DAX 7,662.64 +3.89 +0.05%

Dow +47.61 14,612.86 +0.33%

Nasdaq +18.39 3,222.25 +0.57%

S&P +9.72 1,563.00 +0.63%

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

EUR/USD $1,3017 +0,18%

GBP/USD $1,5264 -0,45%

USD/CHF Chf0,9346 +0,03%

USD/JPY Y99,47 +1,94%

EUR/JPY Y129,49 +2,34%

GBP/JPY Y151,83 +1,50%

AUD/USD $1,0414 +0,32%

NZD/USD $0,8463 +0,41%

01:30 Australia National Australia Bank's Business Confidence March 1 2

01:30 China PPI y/y March -1.6% -1.8% -1.9%

01:30 China CPI y/y March +3.2% +2.5% +2.1%

04:00 China New Loans March 620 890

05:45 Switzerland Unemployment Rate March 3.1% 3.1%

06:00 Germany Current Account February 11.3 14.2

06:00 Germany Trade Balance February 15.7 16.2

06:00 Japan Prelim Machine Tool Orders, y/y March -29.8%

06:45 France Trade Balance, bln February -5.9 -5.3

07:15 Switzerland Retail Sales Y/Y February +1.9% +2.9%

07:15 Switzerland Consumer Price Index (MoM) March +0.3% +0.3%

07:15 Switzerland Consumer Price Index (YoY) March -0.3% -0.5%

08:30 United Kingdom Industrial Production (MoM) February -1.2% +0.4%

08:30 United Kingdom Industrial Production (YoY) February -2.9% -2.8%

08:30 United Kingdom Manufacturing Production (MoM) February -1.5% +0.4%

08:30 United Kingdom Manufacturing Production (YoY) February -3.0% -1.4%

08:30 United Kingdom Trade in goods February -8.2 -8.6

12:15 Canada Housing Starts March 178 176

12:30 Canada Building Permits (MoM) February +1.7% +5.3%

14:00 United Kingdom NIESR GDP Estimate March -0.1%

14:00 U.S. Wholesale Inventories February +1.2% +0.4%