Equity Indices

European stock-index futures rose, signalling that equities will extend a seven-year high. Contracts on the Euro Stoxx 50 Index expiring in March climbed, while the Stoxx Europe 600 Index rallied 4.8 percent in the past four days on optimism that the European Central Bank will step up stimulus measures.

 Interest Rates

 Benchmark Bond Yields

The Treasury on Tuesday accepted 2.1 million 28-day Treasury bills at an average yield of  0.02% and 13 million 91-day Treasury bills at an average yield of  0.023% . Outstanding Treasury Bills now amount to Euro 198,540,000 - an increase of Euro 13.1 million from the previous week.

Denmark's political and central banking establishment is uniting in a campaign to kill speculation that the country might follow Switzerland in scrapping a currency link to the euro.  With markets expecting upward pressure on the Danish crown to persist, most analysts predict an interest rate cut.

German analyst and investor sentiment surged in January for the third straight month with low oil prices and a weaker euro boosting hopes for a strong rebound in Europe's biggest economy after meagre growth in the second half of last year.

 Forex

The yen rebounded against the dollar after the Bank of Japan stood pat on monetary policy, as speculators who had anticipated more easing covered their short yen positions.  The BOJ refrained from expanding its bond-buying stimulus programme, opting instead to expand loan schemes aimed at boosting lending. It also cut its inflation forecast to 1.0 percent from 1.7 percent in the wake of slumping oil prices.

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