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Good morning. Here’s what you need to know.
- Markets in Asia rallied in overnight trading, with China’s Shanghai SE Composite up 1.7 per cent. That did not translate to Europe, where shares are mixed. U.S. futures point to a negative open.
- The European Central Bank said that overnight deposits held at its facilities soared to a record €776.9 billion, or $1.03 trillion, a day after it held its three-year LTRO. This is a substantial rise from the €475.2 billion held at the central bank the day before. Banks receive 0.25 per cent on deposits. Here’s your 10 second guide to what will happen in Europe this year.
- Saudi Arabia denied claims that an oil pipeline exploded in the country, sending oil futures down 0.9 per cent. News sent prices to a 10-month high, with a barrel of crude trading above $110 for the first time since May 2011. Meet the mysterious trading firms that control commodity prices.
- Japanese consumer prices fell for the fourth consecutive month, indicating the Bank of Japan may need to step in to avoid deflationary pressures. Household spending also declined 2.3 per cent year-on-year to ¥283,118, or $3,500.
- Manufacturing expanded for the first time in seven months in South Korea, new data shows. A reading by HSBC showed PMI increased to 50.7 in February, up from 49.2 in January. However, a declining backlog of orders suggests that production is outpacing new orders.
- Eurozone producer prices increased at a faster clip than economists predicted in January. PPI in the 17 nation region rose 0.7 per cent during the month, 20 basis points ahead of expectations, and stood 3.7 per cent above year ago levels. The monthly growth was the slowest rate in more than a year.
- Auto sales in the U.S. improved at a substantial pace, with the seasonally adjusted annual rate of sales hitting 15.1 million. The Detroit-Three all posted sales gains, led by Chrysler’s 40 per cent jump. This was the first time the sales pace topped 15 million in four years.
- The only U.S. announcement scheduled for the day is ISM New York at 9:45 a.m. The reading last increased to 60.1 in January from 51.7 a month earlier. A reading above 50 indicates expansion. Follow the announcement live on Money Game.
- Yelp shares popped nearly 70 per cent during the first few minutes of trading, hitting $25 before retreating slightly. Yelp priced shares of its initial public offering at $15, above expectations it set at $12 to $14 a share. The social review service will offer 7.15 million shares, giving it a market cap of $899 million. Guess which banks Yelp picked to lead its IPO.
- Canadian GDP will be announced at 8:30 a.m. Analysts expect the country’s economy expanded by 0.3 per cent in December. Click here to take a revealing look at Canada during the roaring 20s and crash that followed.