- Richmond Fed Mfg Index improved to 12 in Jan vs 6 exp and 3 prev
- Last night it was announced that EU finance ministers are rejecting the PSI deal on Greek debt. They want 3.50% coupons versus 4.25% by investors. Juncker, who leads the group of EU finance ministers, said the coupon should be “well below” 3.5% for the period to 2020. The interest rate on the bonds should be below 4% “over the total period.” February 13th is the official PSI deadline.
- EU PMI’s for January improved more than expected.
- Composite improved to 50.4 vs 48.5 exp and 48.3 prev
- Mfg improved to 48.7 vs 47.3 exp and 46.9 prev
- Services improved to 50.5 vs 49 exp and 48.8 prev
- Both French and German PMI’s surprised to the upside.
The Bank of India unexpectedly cut the cash reserve ratio to 5.5% from 6%.