European stocks dropped by the most in three weeks as a report showed German manufacturing unexpectedly contracted this month, while Cyprus’s President worked on a new plan to obtain a bailout from the euro area.

A purchasing managers’ index for Germany’s manufacturing industry unexpectedly fell to 48.9 this month. The median economist forecast had called for a reading of 50.5. A separate report showed that manufacturing in France contracted more than estimated.

Cyprus’s President, Nicos Anastasiades, met advisers to draft a new plan to avoid financial collapse after lawmakers rejected the euro area’s proposed levy on bank deposits.

The alternative plan may include a new version of the deposit tax, said an official who asked not to be identified citing government policy. The central bank declared that lenders will remain shut for another two days, effectively preventing Cypriots from accessing their accounts until March 26.

The European Central Bank said it will withdraw Cypriot banks’ access to emergency funds on March 26 if the government fails to agree to a bailout from the European Union and the International Monetary Fund.

National benchmark index fell in all 18 western-European markets. France’s CAC 40 slid 1.4 percent, while the U.K.’s FTSE 100 lost 0.7 percent. Germany’s DAX declined 0.9 percent.

Lanxess slumped 6 percent to 58.31 euros after predicting that Ebitda will drop to as little as 160 million euros ($207 million) in the current quarter. The chemical maker said it has budgeted for declining profit in 2013.

SAP dropped 2.1 percent to 62.96 euros after Oracle Corp. reported sales and profit that missed analysts’ estimates. The U.S. enterprise software maker said its corporate customers reduced their spending on software. Cap Gemini SA, France’s biggest computer-services company, slid 3.9 percent to 36.97 euros.

A gauge of European carmakers posted the worst performance of the 19 industry groups in the Stoxx 600, with Renault SA slipping 5.1 percent to 51.04 euros and Daimler AG retreating 2.2 percent to 43.96 euros.

Oil dropped as German manufacturing output unexpectedly contracted in March, signaling the euro-zone debt crisis is slowing growth in the region’s biggest economy.

Futures fell as much as 1 percent after a purchasing managers’ index for Germany’s manufacturing slipped to 48.9 this month. The median forecast by economists called for a reading of 50.5, according to a survey.

Total euro-area services and manufacturing output slipped more than economists estimated in March. A composite index based on a survey of purchasing managers in both industries fell to 46.5 from 47.9 in February, London-based Markit Economics said today. Economists had forecast a reading of 48.2, according to the median of 23 estimates in a survey.

Cypriot President Nicos Anastasiades is trying to forge an agreement on how to stave off financial collapse. The island country’s government may propose a revamped bank-deposit levy to raise 5.8 billion euros ($7.5 billion) after lawmakers rejected a previous measure, a Cypriot official said.

The European Central Bank said today it may cut Cypriot banks off from emergency funds after March 25 as the country’s president worked on a new plan to obtain a European bailout.

Crude oil for May delivery declined to $92.54 a barrel on the New York Mercantile Exchange.

Brent oil for May settlement fell 55 cents, or 0.5 percent, to $108.17 a barrel on the London-based ICE Futures Europe exchange. 

Gold prices were stable in the first half of trading amid fears for the reduction of Cyprus and the Federal Reserve's promise to continue a policy change. In the last hours before going gold increased data on applications for unemployment benefits in the U.S.. After the Cyprus Parliament rejected the proposal of the EU tax on deposits in Cypriot banks, the island nation is trying to avoid a financial crisis, banks are closed until next week in order to avoid withdrawal and seeking help from Russia. The initial shock of the financial markets was because the small economy of Cyprus will have minimal impact on the world economy and, therefore, support gold prices will not last long, experts say. The growth of prices for precious metals prevent strengthening of the dollar has risen nearly 4 percent since the beginning of the year. The U.S. Federal Reserve on Wednesday maintained aggressive policy to support the economy, saying that would take into account the risks posed by its policies and compare them to progress in reducing unemployment. Demand in the physical market Asia dropped after the price exceeded $ 1,600. Stocks of the world's largest gold-exchange-traded fund (ETF) SPDR Gold Trust on Wednesday rose for the first time since early February. Gold received support today from the labor market data in the U.S. showed that the number of Americans filing applications for unemployment benefits last week increased slightly, but remained at a level indicating an improvement in the labor market. According to data presented Thursday by the Ministry of Labour, the number of initial claims for unemployment benefits in the week of March 10-16, 2000, and increased by a seasonally adjusted 336,000 vibrations made. This is slightly below the forecast of economists, who expected that the number of applications was 340,000. The number of initial claims is an indicator of layoffs. On Thursday Commerzbank cut its outlook on gold prices this year, citing a decrease in demand for the metal from hedge funds and other investment institutions. The bank lowered its forecast for the average price of gold in 2013, up 10% to $ 1,700 an ounce. Bank analysts believe that in the end, the price will increase to $ 1,800, but the mark of $ 2000 will not be reached until 2014. April futures price of gold today rose to 1616.5 dollars per ounce on the New York Mercantile Exchange.

EUR/USD $1.2900, $1.3000, $1.3030, $1.3100

USD/JPY Y95.00, Y95.50, Y95.90, Y96.00(large)

GBP/USD $1.5050, $1.5100, $1.5200

EUR/GBP stg0.8600, stg0.8700

GBP/JPY Y144.70

USD/CHF Chf0.9450

AUD/USD $1.0250, $1.0325, $1.0350, $1.0370, $1.0400

U.S. stock futures were little changed as jobless claims rose less than forecast and German manufacturing unexpectedly contracted.

Global Stocks:

Nikkei  12,635.69 +167.46 +1.34%

Hang Seng 22,225.88 -30.56 -0.14%

Shanghai Composite 2,324.24 +6.87 +0.30%

FTSE  6,386.76 -45.94 -0.71%

CAC  3,783.73 -45.83 -1.20%

DAX 7,930.59 -71.38 -0.89%

Crude oil $93.23 -0.29%

Gold $1614.20 +0.42%

Downgrades:

FBR Capital downgrades Cisco (CSCO) to Underperform from Mkt Perform and lowers their tgt to $17 from $22.

Other:

3M (MMM) resumed with a Neutral at Goldman

Home Depot (HD) reiterated at Hold at Canaccord Genuity

Data

00:30 Australia RBA Bulletin Quarter I

01:45 China HSBC Manufacturing PMI (Preliminary) March 50.4 51.2 51.7

04:30 Japan All Industry Activity Index, m/m January +1.8% -1.1% -1.4%

07:00 Switzerland Trade Balance February 2.13 1.87 2.10

08:00 France Manufacturing PMI (Preliminary) March 43.9 44.4 43.9

08:00 France Services PMI (Preliminary) March 42.7 44.1 41.9

08:30 Germany Manufacturing PMI (Preliminary) March 50.3 50.8 48.9

08:30 Germany Services PMI (Preliminary) March 54.1 54.9 51.6

09:00 Eurozone Manufacturing PMI (Preliminary) March 47.9 48.2 46.6

09:00 Eurozone Services PMI (Preliminary) March 47.3 48.2 46.5

09:00 Japan BOJ Governor Haruhiko Kuroda Speaks

09:30 United Kingdom Retail Sales (MoM) February -0.6% +0.5% +2.1%

09:30 United Kingdom Retail prices, Y/Y February +3.2% +0.5% +2.6%

09:30 United Kingdom PSNB, bln February -9.9 8.4 4.4

11:00 United Kingdom CBI industrial order books balance March -14 -16 -15

The euro fell sharply against the dollar after the data, which were released today by Markit Economics, showed that growth in the private sector in Germany has slowed, departing from the 19-month high, which was recorded in January, reflecting a decline in production and slower growth in the services sector. According to the report, the seasonally adjusted composite index, which measures activity in the manufacturing sector and the service sector declined in March to 51, up from 53.3 in February, showing at the same time, the lowest in the last three months. Furthermore, it became known that the index of business activity in the services sector unexpectedly fell to 51.6 from 54.7 in February. Note that according to forecasts, the index would rise to the level of 55 .. Meanwhile, add the index of business activity in the manufacturing sector fell this month to reach 48.9, up from 50.3 in February, and the consensus forecast at 50.5.

However, despite this decline, the currency was able to recover most of the losses, helped by the positive results of the Spanish auction. Note that today Spain sold bonds worth 4.513 billion euros against the target range of 3-4 billion euros. Yield of 10, 5 and 2-year securities fell. We also add that the Spanish Treasury sold bonds with a term expiration in 2023 in the amount of 2.33 billion euros of bonds expiring in 2018, in the amount of 1.03 billion euros of securities with a term expiration in 2015 in the amount of 1.16 billion euro. Average yield of 10-year bonds was 4,898% against prev. 4.917%, 5-year bonds - 3.557% against prev. 3.572%, and 2-year bonds - 2.275% against prev. 2.632%.

Meanwhile, EU officials continue to hope for positive developments in Cyprus in the coming weekend, despite growing uncertainty. Recall that on Tuesday, the local banks have re-opened. Also of interest is a recent survey, according to which 70% of the island's population would like to leave part of the eurozone.

The pound rose sharply against the dollar, after a report submitted by the Office for National Statistics showed that retail sales increased significantly in the last month, while the amount of government borrowing was much lower than expected, providing a welcome boost for the head of the Treasury, George Osborne, after he was forced to admit that in the coming years growth will be weaker, and the borrowing increase. According to a report by the end of February, retail sales including automotive fuel rose 2.1%. Note that the rate of increase was much stronger than the 0.5% that economists expected. Recall that in the previous month, sales fell by 0.6%. In addition, it was reported that with the exception of motor fuel, sales increased by 1.9%, compared with the average forecast at 0.6%. In annual terms, retail sales excluding automotive fuel rose 3.3%, compared with forecasts of 1.2% growth. Sales, including fuel, increased by 2.6%, while expected to grow by 0.5%.

New Zealand Dollar rate increased significantly while still achieving maximum value for this

month. Support of the New Zealand currency have published data on the eve of New Zealand's GDP. The data showed that by the end of the 4th quarter rose by 1.5% qoq and 3.0% yoy. Average forecasts point to the growth rate of 0.9% and 2.3% respectively. Stronger data strengthened the confidence of market participants that the Reserve Bank of New Zealand will not reduce the interest rate, which currently stands at 2.50%.

Value of the yen rose sharply, helped by comments Governor of the Bank of Japan Kuroda, who noted that the stability of the exchange rate - the sphere of responsibility of the Ministry of Finance. Meanwhile, he added that the Bank of Japan buying foreign bonds can be seen as an intervention. He also expressed his strong belief in the need of qualitative and quantitative easing policy. As for the currency, he added that the yen is still going through a correction phase after excessive growth following the financial crisis, and the correction of an excessive strengthening of the yen after helping to fight deflation. In addition, he said that there is no concern about the "bubble" in the Japanese market assets, and it is highly desirable to achieve the inflation target of 2% in 2 years.

EUR / USD: during the European session the pair fell to $ 1.2880, but later rose to $ 1.2928

GBP / USD: during the European session, the pair rose to $ 1.5208

USD / JPY: during the European session the pair fell to Y95.06

At 12:30 GMT, Canada will report on changes in the volume of retail sales and the change in retail sales excluding auto sales for January. Also, this time in the U.S., there are data on the number of initial claims for unemployment insurance and the number of repeat applications for unemployment benefits in March. At 13:00 GMT the U.S. will provide an index of business activity in the manufacturing sector in March. At 14:00 GMT the United States will report on the volume of sales in the secondary market for February, and will provide the manufacturing index, the Philadelphia Fed in March. At 23:00 GMT Australia will release the index of leading economic indicators from the Conference Board in January.

EUR/USD

Ордера на продажу $1.3040/50, $1.3010, $1.2995-000, $1.2980

Ордера на покупку $1.2880/75, $1.2840, $1.2825/20, $1.2800

GBP/USD

Ордера на продажу $1.5300, $1.5280, $1.5250/60, $1.5220/35, $1.5210

Ордера на покупку $1.5010/00, $1.4985/80, $1.4965/50, $1.4925/20

AUD/USD

Ордера на продажу $1.0520/30, $1.0490/00, $1.0455/60, $1.0450, $1.0415/20, $1.0405/10

Ордера на покупку $1.0365/60, $1.0355/50, $1.0340/30, $1.0320, $1.0310/00

EUR/JPY

Ордера на продажу Y125.00, Y124.45/50, Y124.21, Y123.95/00

Ордера на покупку Y122.90/80, Y122.60/50, Y122.25/20, Y122.10/00, Y121.85/80, Y121.50

USD/JPY

Ордера на продажу Y96.70/75, Y96.45/50, Y96.25/30, Y95.95/00, Y95.75/80

Ордера на покупку Y95.05/00, Y94.85/80, Y94.50

EUR/GBP

Ордера на продажу stg0.8695/700, stg0.8680/85, stg0.8650, stg0.8615/20, stg0.8570/80

European stocks declined, registering with the fourth decline in the past five days, after a report showed that business activity in the manufacturing sector fell unexpectedly this month. Note also that such dynamics influenced by the fact that the President of Cyprus, was working on a new plan for the salvation of the euro zone.

Stoxx 600 fell 0.5% to 295.2.

As shown by recent studies, which were presented today Markit Economics, growth in the private sector in Germany has slowed, departing from the 19-month high, which was recorded in January, reflecting a decline in production and a slowdown in the service sector.

According to the report, the seasonally adjusted composite index, which measures activity in the manufacturing sector and the service sector declined in March to 51, up from 53.3 in February, showing at the same time, the lowest in the last three months. Furthermore, it became known that the index of business activity in the services sector unexpectedly fell to 51.6 from 54.7 in February. Note that according to forecasts, the index would rise to the level of 55. Recall that the value of this index above 50 indicates expansion, while values ​​below 50 suggests contraction. Meanwhile, add the index of business activity in the manufacturing sector fell this month to reach 48.9, up from 50.3 in February, and the consensus forecast at 50.5.

Lanxess price fell 6.3% to 58.09 euros after the company said that the projected income before expenses for taxes, interest and depreciation, reduced to a mere 160 million euros ($ 207 million) in the current quarter. The chemical maker also said that the budget for 2013 is already incorporated lower profits.

Shares of Hennes & Mauritz AB rose 1.6% to 230.20 crowns, even after the company said net income in the first quarter was 2.46 billion kronor ($ 381 million), compared with the average forecast Analysts at 2.57 billion euros.

To date:

FTSE 100 6,382.89 -49.81 -0.77%

CAC 40 3,784.66 -44.90 -1.17%

DAX 7,930.23 -71.74 -0.90%

EUR/USD $1.2900, $1.3000, $1.3030, $1.3100

USD/JPY Y95.00, Y95.50, Y95.90, Y96.00(large)

GBP/USD $1.5050, $1.5100, $1.5200

EUR/GBP stg0.8600, stg0.8700

GBP/JPY Y144.70

USD/CHF Chf0.9450

Most of Asian Pacific stocks rose, led by Japanese shares, on bets the nation’s new central bank governor will announce fresh stimulus and after a survey showed Chinese manufacturing expanded faster than expected.

Nikkei  12,635.69 +167.46 +1.34%

Hang Seng 22,225.88 -30.56 -0.14%

Shanghai Composite 2,324.24 +6.87 +0.30%

Currently:

FTSE  6,428.11 -4.59 -0.07%

CAC  3,821.44 -8.12 -0.21%

Data:

00:30 Australia RBA Bulletin Quarter I

01:45 China HSBC Manufacturing PMI (Preliminary) March 50.4 51.2 51.7

04:30 Japan All Industry Activity Index, m/m January +1.8% -1.1% -1.4%

The yen rose against the dollar as markets await Haruhiko Kuroda’s first press briefing as central bank governor.

New Zealand’s dollar rose against all of its major peers after data showed the nation’s economy grew at the fastest pace in three years last quarter. Data show gross domestic product rose 1.5% in Q4 from Q3, exceeding the 0.9% median estimate.

In the event the FOMC kept monetary policy unchanged but tweaked the economic paragraph: it kept the $85-billion/month pace of Quantitative Easing buying of bonds, said it will reinvest and roll such holdings. It also kept the key fed funds rate still at 0%-0.25%, and pledged exceptionally low rates until the U.S. sees 6.5% unemployment rate and long-term inflation of 0.5% point above 2% inflation for a "considerable time. Dollar fell slightly against major peers after FOMC Statement and Federal Reserve Press Conference.

EUR/USD: the pair was trading in the $1.2930 - $1.2955.

GBP/USD: during the Asian session the pair consolidated above $1.5100, reach $1.5120 area.

USD/JPY: during the Asian session the pair fell in the area of Y95.70.

Data gets underway from 08:00 GMT, when the French March flash manufacturing and services PMI will start the release of flash European data.

German March flash PMIs are expected at 08:30 GMT, to be followed at 09:00 GMT by the release of the Eurozone flash manufacturing and services PMI.

At 11:00 GMT, the March CBI Industrial Trends Survey will be released.

Across the pond, the data calendar starts at 12:30 GMT, with the release of Canadian January retail sales and the US jobless claims data for the March 16 week.

The level of initial jobless claims is expected to rise 8,000 to 340,000 in the March 16 employment survey week after falling by 10,000 in the previous week.

Further US data is expected from 14:00 GMT, with the release of the March Markit PMI (flash) data. Also at 1400GMT, the January FHFA Home Price Index and February Existing Home Sales data will cross the wires.

(symbol/close price(00:00 GMT +02:00)/change, %)  

EUR/USD $1,2943 +0,59%

GBP/USD $1,5103 +0,07%

USD/CHF Chf0,9443 -0,32%

USD/JPY Y96,01 +0,92%

EUR/JPY Y124,27 +1,50%

GBP/JPY Y144,98 +0,98%

AUD/USD $1,0377 +0,12%

NZD/USD $0,8265 +0,25%

USD/CAD C$1,0256 -0,18%

(symbol/close price(00:00 GMT +02:00)/change, %)Hang Seng 22,256.44 +214.58 +0.97%

S&P/ASX 200 4,967.35 -20.05 -0.40%

Shanghai Composite 2,317.37 +59.94 +2.66%

FTSE  6,432.7 -8.62 -0.13%

CAC  3,829.56 +53.81 +1.43%

DAX 8,001.97 +54.18 +0.68%

S&P  1,558.71 +10.37 +0.67%

NASDAQ  3,254.19 +25.09 +0.78%

Dow 14,511.73 +55.91 +0.39%

(symbol/close price(00:00 GMT +02:00)/change, %)

GOLD 1,605.70 -2.50 -0.16%

OIL 93.40 +1.19 +1.29%

00:30 Australia RBA Bulletin Quarter I

01:45 China HSBC Manufacturing PMI (Preliminary) March 50.4 51.2 51.7

04:30 Japan All Industry Activity Index, m/m January +1.8% -1.1% -1.4%

07:00 Switzerland Trade Balance February 2.13 1.87

08:00 France Manufacturing PMI (Preliminary) March 43.9 44.4

08:00 France Services PMI (Preliminary) March 42.7 44.1

08:30 Germany Manufacturing PMI (Preliminary) March 50.3 50.8

08:30 Germany Services PMI (Preliminary) March 54.1 54.9

09:00 Eurozone Manufacturing PMI (Preliminary) March 47.9 48.2

09:00 Eurozone Services PMI (Preliminary) March 47.3 48.2

09:30 United Kingdom Retail Sales (MoM) February -0.6% +0.5%

09:30 United Kingdom Retail prices, Y/Y February -0.6% +0.5%

09:30 United Kingdom PSNB, bln February -9.9 8.4

11:00 United Kingdom CBI industrial order books balance March -14 -16

12:30 Canada Retail Sales, m/m January -2.1% +0.6%

12:30 Canada Retail Sales ex Autos, m/m January -0.9% +0.4%

12:30 U.S. Initial Jobless Claims March 332 343

13:00 U.S. Manufacturing PMI (Preliminary) March 54.3 55.1

14:00 U.S. Leading Indicators February +0.2% +0.3%

14:00 U.S. Existing Home Sales February 4.92 5.03

14:00 U.S. Philadelphia Fed Manufacturing Survey March -12.5 -3.1

18:00 Switzerland Gov Board Member Fritz Zurbrugg Speaks March

21:00 New Zealand ANZ Job Advertisements (MoM) February -1.5%

23:00 Australia Conference Board Australia Leading Index January -0.1%