MARKET NEWS

US MARKETS

On Friday, US indices closed mixed as strong gains in the semiconductors sectors helped the Nasdaq close up. Shares in the capital goods, banks and utilities sectors were under pressure however. The US market was closed Monday for Presidents' Day.

61% of S&P500 constituents stocks traded lower Friday.
33% trade above their 20D MA vs 30% Thursday (above the 20D moving average).
77% trade above their 200D MA vs 78% Thursday (below the 20D moving average).

The VIX index eased 1.23pt to 22.73.

The 10yr yield fell 2.3bps to 3.72% (above the 20D moving average). The 2yr-10yr spread fell 1.5bp to -286bps (below its 20D MA).


EUROPEAN MARKETS
The DJ Euro STOXX 50 rose 0.31% to 2682.66. Stocks from the insurance, basic resources and bank sectors gained ground. On the contrary, stocks from the auto, retail and food & beverage sectors fell.

50% of DJ STOXX 600 stocks traded higher yesterday.
22% trade above their 20D MA vs 18% Friday (below the 20D moving average).
65% trade above their 200D MA vs 65% Friday (below the 20D moving average).

The DJ Euro Stoxx 50 Volatility index eased 0.12pt to 28.33.

The 10yr Bund yield fell 4bps to 3.19% (below its 20D MA). The 2yr-10yr spread fell 2bps to -223bps (below its 20D MA), a new 3mths low.

Outside the euro zone, the FTSE 100 closed up 0.49% to 5167.47. Banks, basic resources and insurance shares gained most in London yesterday. Rio Tinto rose 2.15% to 3275p and Barclays 4.98% to 275.05p.

In Switzerland, the SMI added 0.38% to 6440.76. UBS jumped 2.57% to SF13.98 and Zurich Financial Services 1.7% to SF245.4.

European markets should start the day on a stable note. Trading volume should pick up compared to yesterday.


FOREIGN EXCHANGE
U.S Dollar was flat yesterday as U.S. Markets were closed for Presidents' Day & many Asian markets were closed for Lunar New year.

The Euro remained under pressure yesterday as investors were looking for clarification about European debt reduction following Sunday's Trichet comments. Indeed, the head of the ECB said: "we have a particular Greek problem, but the other countries have their programs and they must be implemented." He added: it's "important that all of the heads of state and governments said that they'll do what is necessary to guarantee the stability of the euro zone."

The Yen was mixed Monday after the release of Japan's 4Q GDP growth (QoQ) at +1.1% against +0.9% expected but a revised down 3Q from +0.3% to 0%.


COMMODITIES
Gold prices gained ground Monday on search for an alternative investment to sovereign debt on rising concern about European debt sustainability.

Oil prices were slightly declining Monday in a low volatility session due to US & most of Asian markets closed. Rising concerns on European growth recovery are still bearing upon oil prices.

Zinc & Nickel were among the best performing commodities yesterday, gaining more than 2% in London.

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