Dear Reader,

Today's overview of economic news and market action: 

• Investor sentiment was back in risk off mood yesterday
• Equity markets fell, bond yields lower, gold higher
• Currency-wise, dollar managed to post some modest gains
• EUR/USD opens this morning in lower half of $1.08-1.09
• Looking ahead, US consumer sentiment (Mar) is the main data highlight today

All rates quoted are indicative market rates.

Total activity falls despite slight improvement in new orders. Housing and commercial activity increase. Staffing levels down for first time in six months.

The March meeting of the ECB Governing Council saw the central bank cut interest rates for a second consecutive time this year. It reduced them by 25bps, with the Deposit rate lowered to 2.50%, while the Re-fi rate was decreased to 2.65%. This marked the sixth 25bps rate cut since the ECB started its easing cycle last June. 

• Manufacturing PMI rose to 51.3 in January, indicating a first monthly expansion since October
• The services PMI fell to 53.4 in January, consistent with a slower pace of expansion
• Retail sales were 0.4% lower YoY in December
• Housing commencements 12 month running total at 60.6k in January