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US stock market, economy and companies update (March 18, 2013)

Contributed by Trade The News

- US equities are still under pressure this morning from the Cyprus situation, although they are off their worst levels. Presently the S&P500 is down 0.63%, the DJIA is off 0.34% and the Nasdaq is down 0.63%. European indices are also well off their overnight lows. Flight-to-safety trading has helped gold climb back above the $1,600 level for the first time since late February, with spot gold trading around $1,607 presently.

- A deal between Cyprus and the Troika has been in the works for quite a while, and concessions were expected. However the inclusion of a 9.9% haircut on all bank accounts is having unintended global consequences, with a bank run on in Cyprus and fears that contagion could spread outward to Europe. The Cyprus Parliament will not vote on the bailout until tomorrow, following multiple delays. It is still unclear what chances the measure has in the legislature and there have been reports the government is still negotiating over the package.

- EUR/USD dropped to three-month lows and momentarily traded in the 1.2800 handle on Sunday evening. The pair retraced from its lows and pivoted around the 1.2950 area during European hours and into the US session.

***Looking Ahead***
- 11:30 (US) Treasury to sell $65B in 3-Month and 6-Month Bills
- 13:00 (DE) ECB's Asmussen to speak
- 13:00 (EU) Luxembourg PM Juncker speaks at Vienna University
- 13:00 (DE) German Chancellor Merkel, France President Hollande and EU's Barroso to meet
- 17:00 (CO) Colombia Jan Trade Balance: No est v $677.3M prior; Imports CIF: No est v $4.5B prior
- 20:30 (AU) RBA March Policy Meeting Minutes


***Economic Data***
- (CL) Chile Q4 GDP Q/Q: 1.5% v 1.4% prior; Y/Y: 5.7% v 5.6%e; 2012 Annual GDP Growth Rate: 5.6% v 6.0% prior
- (CL) Chile Q4 Current Account: -$2.2Be
- (RU) Russia Feb Industrial Production Y/Y: -2.1% v -1.0%e
- (CA) Canada Jan Intl Securities Transactions: +C$13.3B v -C$1.9B prior
- (PL) Poland Feb Avg Gross Wages M/M: +0.8% v -0.4%e; Y/Y: 4/0% v 2.9%e
- (PL) Poland Feb Employment M/M: -0.2% v -0.2%e; Y/Y: -0.8% v -0.9%e
- (PL) Poland Feb Core Inflation M/M: -0.1% v 0.0%e; Y/Y: 1.1% v 1.1%e
- (US) Mar NAHB Housing Market Index: 44 v 47e