US equities could not be pulled out of the red, despite energy companies finishing up, due to the financial sector being dragged down on fears of banks not meeting capital requirements. The DJIA finished -1.1%, S&P 500 closed -1.42% and NASDAQ-100 finished down 1.59%. The US Labour market Conditions Index Change for Jan came in lower than expect at 0.4 vs 2. Today see the JOLTS Job Openings (expected at 5.54M), Wholesale Inventories (expected at -0.1%) and the Mortgage Delinquencies previously at 4.99% being released. Given the relatively light news front, these could give the dollar a lift should they come out better than expected or see it weaken if they come out worse than expected.


ECB`s Coeure (dove) stated that the ECB`s top priority is to raise inflation, and will do more if required. Today has markets waiting for the German Industrial Production and trade balance, expected at 0.2% and 19.4B respectively, and also comments out of the ECB`s Linde.


The Nikkei slid more than 5% to close the session in heavy losses after the JPY continues to strengthen in the face of continued risk off sentiment which has forced the Japanese 10 year yields into negative territory. The USDJPY dropped to 15-month lows as it traded to 114.20, leaving the BOJ speechless as their recent efforts to weaken the YEN has been undermined. The only notable data out of Asia today, comes in the form of the Japanese PPI y/y which is expected at -2.8%.