• Italys February-Final CPI confirmed at +0.2% m/m, 1.6% y/y
• Japan Government: Economy is worsening rapidly, in a severe state
• Euro zone February- Final CPI confirmed at +0.4% m/m, 1.2% y/y
• Barcalys report “strong” start to the year
• Risk sentiment is improving with sterling and the euro beneficiaries. Sterling has done especially well. Cable has put on the best part of two full cents this morning. Stop loss buy orders were triggered at 1.4075/80, 1.4110 and 1.4190 accelerating the move higher. “Russian” interest and a “large UK corporate ” got the ball rolling early. EUR/USD has also made some decent gains, the move there accelerating as stops above 1.3000 were triggered.
• Global stockmarkets are doing well, with banking and financial stocks leading the way. In the UK shares of Barclays surged as the bank reported a “strong” start to the year. Citibank, Bank of America and JP Morgan Chase have also all said they made money in the first two months of 2009.
• Fed Chairman Bernanke helped sentiment. In his “60 Minutes” appearance he said should the government succeed in calming financial markets, then the U.S. recession will probably end this year. The official said “green shoots” are appearing in some markets aided by the Fed and there has been “some improvement” in banks.
• Meanwhile the G20 did their bit. The Worlds’ top finance ministers and central bankers pledged to restore bank lending strength, financial regulations and boost funding to the IMF.