Positive US Data: DJIA Up 0.84 %

Keep your eyes on Italian Bond Auction, 10 and 5 year governments later in the European trading session. Italian ten-year bonds were at their highest price since December yesterday. Fed Reserve Chairman Ben Bernanke spoke of the easing programme yesterday to the Senate, commenting that the advantages of further easing far outweigh the negatives. Later today, the US will post its data on durable goods orders as well as pending home sales. Ben Bernanke will continue his testimony on the fiscal policy. ECB President Draghi will speak in Germany today.

Stocks

Europe
Eurozone stocks are performing well today in the wake of healthy Consumer climate data from German,y even with the political instability coming from the Italian elections. The GFK research report on German consumer climate showed a rise to 5.9 in Feb from 5.8 in January, which met expectations. This morning's European trading session brought positive change for the EURO STOXX 50 which rose by 0.45per cent, the French CA 40 which gained by 0.51per cent and the German DAX 30 which climbed 0.30per cent. Italian 10-year government bonds rose to 4.91 per cent from 4.37per cent, and the Spanish 10 year bonds moved from 5.1per cent to 5.5per cent at the start of this week.

US
Gains came in all round for the US stocks after positive data from housing and consumer confidence reports. The DJIA closed up 0.84 per cent, S&P 500 up 0.61per cent and the NASDAQ up 0.43per cent. Consumer confidence figures had climbed to their highest level in 3 months, reaching better than expected 69.6 from 58.4 the previous month. Meanwhile New Home sales climbed up 15.6per cent to 437000 units in Jan, the highest point since Mid 2010. Home prices are on the increase too; prices on the S&P/Case Shiller Index reached an annual level of 6.8per cent which compares to an expectation of 6.6per cent.

Asia
Most Asian Indexes performed higher in Asian trading session expect for the Nikkei which dropped by 0.74 per cent, off the back of the USD/JPY which was trading lower. The Hong Kong Hang Seng was trading 0.43 per cent up, and the Shanghai Composite trading 0.34per cent higher. Australian S&P/ASX 200 gained 0.7per cent.

Forex
The EUR/USD touched 1.321 this morning, a high for the pair after increased borrowing costs for Italy at the 5 and 10 year bond auctions. All government bonds were sold at the expected amount of 6.5 billion euros. Italy is still keeping investors on edge as a result of the political deadlock.The USD also fell lower against the Yen with the USD/JPY dropping 0.32per cent to 91.68 a fair way off from the considered fair price of 100. The Yen is being buoyed by investor demand after Ben Bernanke’s testimony and the political stalemate in Italy. GBP still at low against the USD after data revealed that the UK economy has shrunk a further 0.3per cent in Q4. The GBP/USD pair touched 1.5081 this morning in European trading.

Commodities
Gold at a high this morning trading at $1611.90 troy ounce for April delivery. Crude oil inched upwards as investors watch out for weekly supply data from US.