The euro hit a four-month low against the dollar, amid contradictory statements of officials on the eurozone rescue program of Cyprus and its possible extension to other troubled economies in the region. Note that the largest Bank of Cyprus and Laiki will be closed until Thursday. In addition, it was reported that Bank of Cyprus will go through restructuring, and Laiki will be closed, and its healthy assets will be transferred to a competitor. The European Central Bank on Monday pledged to provide liquidity Cypriot banks have accumulated 68 billion euros of deposits. Without this measure, banks face immediate bankruptcy because of the expected mass withdrawals from the accounts.

Meanwhile, many investors are worried that the euro zone officials will continue to rescue troubled banks by depositors, as happened in Cyprus. Pressure on the euro was words of the chairman of Eurogroup Yerona Disselbluma that the plan of salvation of Cyprus a model for combating banking crises in the future. Disselblum also said that uninsured deposits should contribute to the salvation of Cyprus. ECB Kéré Disselblyumu said today that he did not agree with him and agreed on Cyprus is not a new model for Europe, adding that there is no reason to think that the French banks, the same problem as that of Cyprus. He also noted that the Cyprus problem only shows that the ECB should be independent supervisory body for banks in Europe.

Japan's currency fell against most of its 16 major counterparts, helped by comments Governor of the Bank of Japan Kuroda, who noted that the close cooperation between the government and the Bank of Japan will help to "smoothly" to achieve 2% inflation. Meanwhile, he added that the task of government - to stimulate economic growth, employment in the medium and long term. At the same time, he said that the price trends are influenced by various factors, such as fiscal policy of the government, the promotion of growth. In addition, he said the government would try to reach a level of 2% inflation for two years at any cost

The pound fell to balance report sales CBI Britain. Research trends CBI distributive trade in Britain reflected the drop in sales to 0 in the March 8 against the previous forecast of 11. However, expectations in April rose from 8% to 15% (with a maximum of December). Meanwhile, market sentiment influenced British Finance Minister comments Osborne, who made it clear that salvation holders of insured deposits in Cyprus - is a bad idea. He also noted that the final plan should not include saving the owners of insured deposits. In addition, he believes that the salvation of Cyprus was not well thought out, and it will leave Cyprus with sustainable debt. Osborne added that Cyprus is experiencing a sharp decline in GDP, and for all it would be better if the euro zone more quickly solved their problems.

European (SXXP) stocks advanced as better- than-estimated U.S. durable-goods orders and housing data helped offset concern euro-area lawmakers will impose losses on bank deposits in the region.

The Stoxx Europe 600 Index added 0.2 percent to 293.76 at 4:30 p.m. in London.

National benchmark indexes advanced in seven of the 18 western European markets today.

FTSE 100 6,399.37 +20.99 +0.33% CAC 40 3,748.64 +20.66 +0.55% DAX 7,879.67 +8.77 +0.11%

The Cyprus Stock Exchange remains closed for trading today and tomorrow as banks are closed, according to a statement on CSE’s website.

U.S. durable-goods orders rose in February by the most in five months, Commerce Department figures showed today. The 5.7 percent increase in bookings for goods meant to last at least three years followed a revised 3.8 percent drop in January. Economists had predicted 3.9 percent increase before the report.

Morrison advanced 3.5 percent to 276 pence after Citigroup Inc. upgraded the retailer to buy and lifted its price estimate for the shares to 325 pence from 280 pence.

Celesio added 4 percent to 14.50 euros after the Germany drug wholesaler said 2012 earnings exceeded its own target.

Bellway Plc rose 2.9 percent to 1,227 pence. The U.K. housebuilder said net income increased 51 percent in the six months ended Jan. 31 to 46 million pounds ($70 million) from a year earlier.

SBM Offshore NV rallied 3.6 percent to 13.34 euros. Brazil’s Petroleo Brasileiro SA awarded letters of intent for the lease of two floating production, storage and offloading units to the Dutch company. The projects will have a total value of $3.5 billion and will be operated by SBM’s joint venture with Queiroz Galvao Oleo e Gas SA and other partners.

EDF SA (EDF) advanced 2.4 percent to 15.31 euros after Morgan Stanley upgraded the shares to overweight, the equivalent of a buy recommendation, from equal weight. The brokerage said the shares are trading at a deep discount.

Brent crude oil price dropped while still achieving the lowest level in more than eight months, helped by strong data on new home sales. Also contributed to the lower prices that high oil reduces the need for U.S. imports. Note that, according to a report from the Ministry of Commerce, sales of new homes fell in February by 4.6 percent to a seasonally adjusted to the level of 411,000 homes a year in January from a revised value of 431,000. Economists had expected new home sales will drop to 426 thousand from 437 thousand, which was originally reported in the previous month. The number of unsold homes in the U.S. in February corresponds to 4.4 months of sales. The number of new homes for sale recorded in the U.S. last month rose, signaling that builders are increasing the pace of construction to meet the growing demand. At the end of February, seasonally adjusted 152 thousand houses were presented for sale, which is the highest value since November 2011.

Nevertheless it, in spite of such data, the price of WTI crude oil rose while still achieving the highest level since February 19.

Economists also noted that housing data highlighted the contrasting state of the economy on both sides of the Atlantic, and the fact that the debt problems afflicting the eurozone, not resolved.

Meanwhile, market participants expect the data for commercial crude oil inventories in the U.S., which is forecast to increase by 1.1 million barrels last week.

May futures for U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 95.46 dollars per barrel.

May futures price of North Sea Brent crude oil mix fell 5 cents to $ 108.10 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices fell today, as demand for safe-haven on the decline after Cyprus had reached an agreement in respect of financial assistance, as well as the background of the European Central Bank has tried to allay concern that the rescue could have negative consequences for other countries the euro area.

While Cyprus deal with international lenders on how to close the second largest bank in the country in exchange for 10 million euros ($ 13 billion) rescue equipment has helped to remove the immediate risk of financial collapse, investors were concerned that this could create a new precedent in the restructuring of the banking sector in the eurozone.

Note that gold, which usually benefits from economic uncertainty, last week rose to a three-week high of $ 1,616.36 on fears about salvation Cyprus, but was unable to gain a foothold there, down to the last week's low of $ 1,589.49. However, the spot price of gold is still on the way to the first monthly increase since October of last year.

We add that the data released today also showed that the gold in the SPDR Gold remained at 1,221.26 tonnes as compared to the previous day. Note that this year's reserves in SPDR Gold Trust fell by almost 130 tons, after increasing by 96 tons in 2012.

With across-the-board government spending cuts creating uncertainty regarding the economic outlook, the Conference Board released a report on Tuesday showing a notable deterioration in U.S. consumer confidence in the month of March.

The Conference Board said its consumer confidence index fell to 59.7 in March from a revised 68.0 in February. Economists had expected the index to dip to 67.5 from the 69.6 originally reported for the previous month.

After reporting U.S. new home sales at their highest level in over four years in the previous month, the Commerce Department released a report on Tuesday showing that new home sales pulled back by more than expected in the month of February.

The report said new home sales fell 4.6 percent to a seasonally adjusted annual rate of 411,000 in February from the revised January rate of 431,000.

Economists had expected new home sales to drop to 425,000 from the 437,000 originally reported for the previous month.

EUR/USD $1.2750, $1.2805, $1.2810, $1.2815, $1.2900, $1.2950, $1.3000

USD/JPY Y94.00, Y94.30, Y94.70, Y95.00, Y95.20, Y95.50

EUR/JPY Y120.20

GBP/USD $1.5000, $1.5130, $1.5175, $1.5200

GBP/JPY Y144.50

AUD/USD $1.0400, $1.0450, $1.0475

AUD/JPY Y98.00

NZD/USD $0.8280

U.S. home prices rose more than expected during January from a year earlier, the biggest increase since the summer of 2006, according to Standard & Poor's Case-Shiller home-price indexes.

During January, the Case-Shiller index of 10 major metropolitan areas was up 0.2% and the 20-city index increased 0.1% from December. However, on a seasonally adjusted basis, the indexes both rose 1%.

On a year-on-year basis, the 10-city index grew 7.3%. The 20-city index improved 8.1%, above recent expectations of economists polled by Thomson Reuters for an increase of 7.9%.

Low mortgage rates, a reduction in foreclosures and a shrinking inventory of homes on the market--along with an improving economy--have been supporting a gradual housing-market recovery.

Still, the two indexes remain off 29% to 30% from their June/July 2006 peaks through January.

On a year-on-year basis, 20 cities recorded growth in home prices, with eight posting double-digit increases on a percentage basis. All the cities in the index except Detroit recorded a stronger pace of year-on-year price increases for the month. Meanwhile, New York-area home prices turned slightly higher, up 0.6%, after declining for 28 consecutive months.

Markets that were hard hit by the housing bust have been among those with the strongest growth lately. During January, Phoenix posted the biggest increase, at 23%. Las Vegas home prices were up 15%.

Though closely followed by economists and the markets, the Case-Shiller index is a lagging indicator of values--a moving average now two months old.

U.S. stock futures rose as government data showed orders for durable goods climbed more than forecast in February.

Global Stocks:

Nikkei  12,471.62 -74.84 -0.60%

Hang Seng 22,311.08 +59.93 +0.27%

Shanghai Composite 2,297.67 -29.05 -1.25%

FTSE  6,384.29 +5.91 +0.09%

CAC  3,749.75 +21.77 +0.58%

DAX 7,883.99 +13.09 +0.17%

Crude oil $95.59 +0.82%

Gold $1596.30 -0.51%

Other:

Johnson & Johnson (JNJ) target was raised to $87 from $81 at UBS  

New orders for U.S. manufactured durable goods rose by more than expected in the month of February, according to a report released by the Commerce Department on Tuesday, although the increase was largely due to a rebound by orders in the volatile transportation sector.

The report said durable goods orders surged up by 5.7 percent in February following a revised 3.8 percent decrease in January. Economists had expected durable goods orders to rise by 3.5 percent compared to the 4.9 percent decrease that had been reported for the previous month.

Excluding orders for transportation equipment, however, durable goods orders fell by 0.5 percent in February compared to a 2.9 percent increase in January. Ex-transportation orders had been expected to increase by 0.7 percent.

EUR/USD

Offers $1.3050, $1.3020, $1.3000, $1.2940/50, $1.2900/10

Bids $1.2800, $1.2725/15

GBP/USD

Offers $1.5350, $1.5315/30, $1.5300, $1.5280, $1.5240/50, $1.5220/25, $1.5210

Bids $1.5125/20, $1.5100/090

AUD/USD

Offers $1.0595/00, $1.0550, $1.0520/30, $1.0500

Bids $1.0445/40, $1.0420/15, $1.0410/00, $1.0385/80, $1.0365/60

USD/JPY

Offers Y94.95/00, Y94.90, Y94.70/75, Y94.45/50

Bids Y93.85/80, Y93.55/50, Y93.20, Y93.00

EUR/GBP

Offersstg0.8650, stg0.8615/20, stg0.8600/05, stg0.8570/80, stg0.8555/65, stg0.8535/40, stg0.8510, stg0.8455/65

Bids stg0.8450/40, stg0.8410/00

EUR/JPY

Offers Y122.95/00, Y122.65/70, Y122.00, Y121.85/90

Bids Y120.75/70, Y120.50, Y119.50

Most European stocks advanced before U.S. data that may show durable-goods orders increased and new-house sales held close to a four-year high last month.

The Cyprus Stock Exchange remains closed for trading today and tomorrow due to the continuing bank holidays, according to a statement on CSE’s website.

U.S. durable-goods orders probably rose in February by the most in five months, economists said before the Commerce Department releases the figures at 8:30 a.m. in Washington. The 3.9 percent increase in bookings for goods meant to last at least three years would follow a revised 4.9 percent drop in January, according to the median forecast.

A separate report at 10 a.m. in Washington may show new houses sold at a 420,000 annual pace last month after a 437,000 rate in January, the best back-to-back performance in four years, economists surveyed.

In Italy, Pier Luigi Bersani will meet Silvio Berlusconi’s deputies today in his bid to assume the Italian premiership. Bersani has two days to overcome a shortfall of support in parliament and avoid an immediate return to the polls after inconclusive elections last month. The appointment is set to start at 4:15 p.m. in Rome.

Celesio advanced 2.1 percent to 14.24 euros. Earnings before interest, taxes, depreciation and amortization, adjusted for one-time effects, increased 4.5 percent to 579.6 million euros in 2012. For this year, the company projected an adjusted Ebitda of 580 million euros to 610 million euros.

Bellway Plc rose 2.1 percent to 1,217 pence. The U.K. homebuilder said net income increased 51 percent in the six months ended Jan. 31 to 46 million pounds ($70 million) from a year earlier.

FTSE 100 6,387.75 +9.37 +0.15%

CAC 40 3,753.56 +25.58 +0.69%

DAX 7,898.38 +27.48 +0.35%

EUR/USD $1.2750, $1.2805, $1.2810, $1.2815, $1.2950, $1.3000, $1.3030, $1.3070

USD/JPY Y94.00, Y94.30, Y94.70, Y95.00, Y95.20, Y95.50, Y96.00, Y97.00

EUR/JPY Y119.60, Y120.20

GBP/USD $1.5000, $1.5130, $1.5175, $1.5200

GBP/JPY Y144.50

AUD/USD $1.0400, $1.0450, $1.0475

AUD/JPY Y98.00

NZD/USD $0.8280

Asian stocks fell, paring the biggest rally in two weeks yesterday, on concern Cyprus’s bank- restructuring plan will be used for other European nations, imperiling depositors and bondholders, and on a report China is stepping up property curbs.

Nikkei 225 12,471.62 -74.84 -0.60%

Hang Seng 22,311.08 +59.93 +0.27%

S&P/ASX 200 4,950.25 -39.95 -0.80%

Shanghai Composite 2,297.67 -29.05 -1.25%

HSBC Holdings Plc, Europe’s biggest lender, dropped 1.3 percent in Hong Kong.

Country Garden Holdings Co., the Chinese developer controlled by billionaire Yang Huiyan, decreased 1.7 percent on a report that banks have started to control the scale of loans for mainland real estate developments.

The euro fell to a four-month low against the dollar after European leaders said that the salvation of Cyprus can become a precedent, encouraging doubts about the safety of other big mill in the eurozone.

The single currency fell against all 16 most-traded currencies, after the Dutch Minister of Finance and Chairman of the Eurogroup Jeroen Deysselblum said it was important to avoid risks in the public sector. Furthermore, he added that the agreement on Cyprus could lead to the restructuring of the banking sector. Meanwhile, he believes that after Cyprus Eurozone bank expects hard mode.

We also add that the comments of the Finance Committee chairman Nicolas Papadopoulos of Cyprus about the likelihood of the country out of the euro zone, along with rumors of a downgrade of Italy for some time to be in the focus of the players.

The yen rose sharply against the dollar, while restoring previously incurred losses, as investors used the currency as a safe-haven. Recall that Kuroda last week in his inaugural speech as head of the central bank of Japan said that it would do everything possible to achieve an inflation rate of 2%.

The pound rose to a six-week high against the euro on fears that political disputes for 10 billion euros ($ 13 billion) for Cyprus, undermined confidence in the financial system of Europe.

The British pound fell against the U.S. dollar on the background data for the approved applications for mortgage BBA, the number of which was reduced to 30.5 million in February vs. 33.6 thousand and 32 thousand in January. Companies and homeowners the UK in February to pay their debts, and the amount of borrowing from large banks remained fairly low. Also contributed to the drop in currency report from Hometrack, which showed that house prices in England and Wales rose in March by 0.3 percent compared with the previous month, while showing the biggest increase since March 2010. At the same time, it became known that on an annual basis, prices remained at the same level. In addition, the data showed that in London, the average house prices have increased in monthly terms by 0.7 per cent, demonstrating the highest growth in the last 3 years. We add that the decline in prices was registered only in the north-eastern area.

Asian stocks rose, with the regional benchmark gauge recovering from its biggest weekly drop in seven months, after Cyprus agreed to an international bailout and profit at China Petroleum & Chemical Corp. topped forecasts.

Nikkei 225 12,546.46 +207.93 +1.69%

Hang Seng 22,251.15 +135.85 +0.61%

S&P/ASX 200 4,990.2 +22.94 +0.46%

Shanghai Composite  2,326.71 -1.56 -0.07%

Sony Corp. gained 3.1 percent as the yen weakened, boosting the outlook at Japan’s No. 1 consumer-electronics exporter.

Sinopec, as Asia’s biggest refiner is known, rose 2.6 percent after net income beat analyst estimates.

Leighton Holdings Ltd. surged 4.3 percent as Australia’s largest construction company appointed Bob Humphris chairman after his predecessor resigned in a dispute with shareholder Hochtief AG over board independence.

European stocks declined as a report sparked concern a rescue plan for Cyprus that involves shrinking its banking system may set a precedent for other euro- area lenders.

The Stoxx Europe 600 Index (SXXP) slid 0.3 percent to 293.25 at the close of trading, after rising as much as 1 percent and falling as much as 0.5 percent. The index has still gained 4.9 percent so far this year.

National benchmark indexes fell in 13 of the 17 western European markets open today.

FTSE 100 6,378.38 -14.38 -0.22% CAC 40 3,727.98 -42.31 -1.12% DAX 7,870.9 -40.45 -0.51%

Meyer Burger dropped 5 percent to 6.66 Swiss francs after saying it will raise 150 million francs ($158 million) by selling new stock to existing shareholders. The supplier of machinery to solar-panel makers reported a full-year net loss of 2.33 francs per share.

Remy Cointreau SA declined 2.5 percent to 89.58 euros after Nomura Holdings Inc. lowered its recommendation on the maker of Remy Martin cognac to reduce from neutral, citing a demand slowdown in China.

Vodafone rose 2 percent to 187.2 pence. The Sunday Times reported that Europe’s largest mobile-phone operator held talks with Verizon to sell its stake in Verizon Wireless for $135 billion. The paper cited unnamed people familiar with the matter.

Metso Oyj (MEO1V) surged 9.6 percent to 33.75 euros, the biggest increase since July 26. The Finnish maker of rock crushers is studying the possibility of separating its pulp, paper and power businesses into a new company that would be listed in Helsinki, according to a statement.

CSM NV rallied 6.4 percent to 17.52 euros, the biggest jump since May, after agreeing to sell its bakery-supplies unit to Rhone Capital LLC for an enterprise value of about 1.05 billion euros. The Dutch maker of bakery supplies and lactic acids, which put up the unit for sale in May, said it expects net cash of about 850 million euros from the deal.

Daily Mail & General Trust Plc increased 2.6 percent to 705 pence after the newspaper publisher left its revenue projection for the year unchanged and said it will continue a share buyback program.

U.S. stocks fell, after the Standard & Poor’s 500 Index rose to within a point of its record high, amid concern Cyprus’s bank-restructuring plan will pave the way for losses on deposits in other European nations.

Equities rallied earlier as Cyprus, the euro-area’s third- smallest economy, met the terms for a 10 billion-euro ($13 billion) bailout after agreeing early this morning in Brussels to shrink its banking system. The finance ministers from the 17- member euro area ratified the country’s accord with the troika of the European Central Bank, the European Commission and the International Monetary Fund.

Europe Banks

Stocks turned lower as Dutch Finance Minister Jeroen Dijsselbloem said troubled lenders in the euro area must now fend for themselves as part of future euro rescues. German advisers cut the nation’s 2013 economic growth forecast to 0.3 percent, from its previous estimate of 0.8 percent, citing “the sharp decline” of gross domestic product in the fourth quarter of 2012.

The S&P 500 declined 0.2 percent last week for its second weekly drop as Cyprus struggled to raise enough money to obtain the bailout and a report showed euro-area manufacturing contracted more than expected. The gauge has still climbed 8.9 percent in 2013, and advanced today within a point of its record of 1,565.15 set in October 2007 before erasing gains. The Dow reached an intraday high last week after first surpassing its all-time record on March 5.

Most components of DOW index closed in minus. Shares of Wal-Mart Stores Inc. (WMT, +0.79%) advanced more than other components. Shares of Bank of America Corporation (BAC, -1.46%) fell more than other components

All sectors of the S&P closed in minus. Most fell showed sector of conglomerates (-1.1%).

At the close:

Dow -61.39 14,450.64 -0.42%

Nasdaq -9.69 3,235.31 -0.30%

04:45 Australia RBA's Governor Glenn Stevens Speech March

The yen fell against most of its major peers as Bank of Japan Governor Haruhiko Kuroda outlined monetary easing options to achieve a 2 percent annual inflation goal in two years. Kuroda told lawmakers today that the BOJ will discuss purchasing more bonds with longer maturities. The BOJ currently buys government bonds maturing in up to three years through its 76 trillion-yen ($807 billion) asset-purchase program.

He also said the BOJ may scrap its so-called banknote rule of keeping central bank bond holdings at less than the value of banknotes outstanding. Policy specifics will be discussed at the BOJ board meeting scheduled for April 3-4, Kuroda said.

The euro traded 0.2 percent from a four-month low ahead of debt auctions in Italy, where lawmakers are trying to form a government after inconclusive elections last month. Italy is scheduled to sell bills today and bonds due in 2018 and 2023 tomorrow. The euro zone’s fourth-biggest economy auctioned 2.8 billion euros ($3.6 billion) of 2014 zero-coupon bonds yesterday at a yield of 1.746 percent, the highest since Dec. 27.

In the U.S., orders of durable goods probably rebounded 3.9 percent in February from a 4.9 percent drop the month before, according to the median estimate of economists surveyed by Bloomberg News before the data is released today.

EUR / USD: during the Asian session, the pair rose to $ 1.2870.

GBP / USD: during the Asian session, the pair traded in a range of $ 1.5165/85.

USD / JPY: during the Asian session, the pair traded around Y94.20.

There is data on both sides of the Atlantic Tuesday, starting with the release of French data. At 0745GMT, French March housing starts/permits and the March consumer confidence survey are set for release. At 0900GMT, the Central Bank of Luxembourg is slated to present its latest Bulletin. At 1000GMT, European Central Bank Governing Council member Ewald Nowotny will participate in a panel discussion, in Prague. Additionally, the Portugal Bank of Portugal is set to publish its Spring Economic Bulletin, although no time is set. French February registered jobseekers numbers will be released at 1700GMT. There is little in the way of UK data, although the March CBI  Distributive Trades data will be released at 1100GMT. At 1425GMT, UK Chancellor George Osborne appears before the Treasury  Select Committee to be grilled on the 2013 Budget Statement.

Change % Change Last

Oil $94.54 -0.27 -0.28%

Change % Change Last

Nikkei 225 12,546.46 +207.93 +1.69%

Hang Seng 22,251.15 +135.85 +0.61%

S&P/ASX 200 4,990.2 +22.94 +0.46%

Shanghai Composite  2,326.71 -1.56 -0.07%

FTSE 100 6,378.38 -14.38 -0.22%

CAC 40 3,727.98 -42.31 -1.12%

DAX 7,870.9 -40.45 -0.51%

Dow -61.39 14,450.64 -0.42%

Nasdaq -9.69 3,235.31 -0.30%

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

EUR/USD $1,2847 -1,09%

GBP/USD $1,5171 -0,38%

USD/CHF Chf0,9487 +0,85%

USD/JPY Y94,17 -0,34%

EUR/JPY Y120,99 -1,46%

GBP/JPY Y142,85 -0,74%

AUD/USD $1,0453 +0,10%

NZD/USD $0,8350 -0,06%

04:45 Australia RBA's Governor Glenn Stevens Speech March

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

07:00 United Kingdom Nationwide house price index, y/y March 0.0% +0.9%

07:45 France Consumer confidence March 86 86

08:00 Switzerland KOF Institute Economic Forecast Quarter II

10:00 United Kingdom Chancellor Osborne Speaks March

11:00 United Kingdom CBI retail sales volume balance March 8 12

12:30 U.S. Durable Goods Orders February -5.2% +3.8%

12:30 U.S. Durable Goods Orders ex Transportation February +1.9% +0.7%

12:30 U.S. Durable goods orders ex defense February +2.8% -0.4%

13:00 U.S. S&P/Case-Shiller Home Price Indices, y/y January +6.8% +7.9%

14:00 U.S. Richmond Fed Manufacturing Index March 6 8

14:00 U.S. Consumer confidence March 69.6 69.3

14:00 U.S. New Home Sales February 437 426