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EUROPEAN STOCKS: Major European bourses are initially seen trading modestly lower Friday. Spreadbetters Cantor Index are calling the FTSE down 7, the DAX down 9 and the CAC off 6.
US STOCKS: The Dow Jones Industrial Average closed up 45 pts at 12623.98 and the Nasdaq Composite closed up 19 pts at 2788.33. US index futures are trading narrowly mixed in Asian trade Friday. The S&P Mar contract was last down 1.8 points at 1308.6, with the Nasdaq Mar contract up 1.75 points at 2427.0. Dow futures are 10 points lower at 12577.
JGBS: Japanese government bond prices were lower, weighed down by overnight declines in U.S. Treasury prices led by easing safe-haven bond demand. JGBs briefly cut some losses in the wake of investors' bargain-hunting but today's rise in the Nikkei stock index impeded dip-buying. The benchmark 10-year yield was 1.5 bps higher at 0.980%.
JAPAN STOCKS: Japan's benchmark stock indices ended Friday's session higher, extending gains seen in the previous 4 sessions. The Nikkei ended up 1.47%, to stand at 8766.36. The broader-based TOPIX was higher by 14.96 points at 755.64.
FX MARKETS: Euro continued the rally started on Monday with the US market adding to the "risk-on" trade following successful, albeit expected, auctions in France and Spain yesterday. Strong jobless claims data and comments from ECB's Draghi that the LTRO program was working well kept the tempo alive, with euro dollar pushing up through solid resistance at $1.2925 to highs of $1.2971. Asia markets have had little to do with the pair this morning trading a $1.2954-73 range. HSBC China Flash Mfg PMI failed to excite, with market content to consolidate ahead of the Chinese New year celebrations on Monday. Elsewhere was a similar story with Cable bolted down in between $1.5476-97 and dollar-yen through Y77.05-21. Aussie-dollar continues to lag the euro recovery as euro-aussie hauls itself off its recent all time lows of A$1.2228 to highs this morning of A$1.2463, leaving aussie-dollar to continue to hover just above $1.0400.
OIL: Crude futures are trading modestly higher in Asian trade Friday, having been tied to narrow ranges in thin trade. The front-month WTI contract was last 11 cents higher at $100.35 to $100.53.
Technical Analysis
BUND: (H12) Moves to Test 21-Day Moving Average
 Click on image to enlarge!
RES 4: 142.11 2% volatility band
RES 3: 140.72 1% volatility band
RES 2: 140.23 High 13 Jan
RES 1: 139.66 5-day moving average
PREVIOUS CLOSE: 139.03
SUP 1: 138.84 Low 19 Jan
SUP 2: 138.70/73 21-day moving average, Low 13 jan
SUP 3: 138.46/49 50% retracement of 136.69 and 23.6% of 132.87 rallies
SUP 4: 138.04 61.8% retracement of 136.69/140.23
COMMENTARY: Daily studies are reversing from overbought territory as the Bund moves to test the 21-day moving average. Fibonacci levels include 138.88, Y138.46/49 and 138.04.
Eurostoxx50 Techs: Tests Bollinger Band
 Click on image to enlarge!
RES 4: 2523.9 61.8% retracement of 2887 decline
RES 3: 2506.2 High 28 Oct
RES 2: 2474.0 200-day moving average
RES 1: 2435.0 Closing high 19 Jan
PREVIOUS CLOSE: 2435.0
SUP 1: 2384.0 5-day moving average
SUP 2: 2332.0 21-day moving average
SUP 3: 2283.0 55-day moving average
SUP 4: 2279.7 Low 9 Jan
COMMENTARY: Daily studies turned back higher as the market builds on recovery from the 21-DMA to test the Bollinger band. Looking ahead, bulls need to focus on extending gains to the 200-day moving average.
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