• China’s central bank Governor, Zhou Xiaochuan, expressed confidence in the euro, and suggested that China stands ready to increase reserve holdings in the currency. The Governor upped the rhetoric as European Union officials were visiting. Markets around the globe are latching on to the commentary. Time will tell if the Chinese are willing to do much more than talk up the euro. From Reuters News.
• The euro zone economy contracted for the first time since 2009, but at a rate less than forecast. Economies in the 17 nation area fell .3% in the fourth quarter, slightly less than the .4% drop forecast. France and Germany mitigated some of the weakness. France’s economy grew in the period, and Germany’s fell less than forecast. From Bloomberg News.
• Greek conservative head Samaras will submit a letter of commitment to the EU/IMF bailout terms by days end, according to sources. The move would help to keep negotiations alive, but the harsh economic realities around the catastrophic collapse in GDP may have already started Greece down the path of withdrawal from the union. From Reuters News.