In Asian Equity Markets Japan’s Nikkei share average fell to a near two-week low on Thursday as a stronger yen hurt exporters, although firmer oil prices pulled up oil and mining stocks. The Nikkei ended 1.1 percent lower at 23,669.49, the weakest closing level since Jan. 12. Transport equipment stocks fell, with Honda Motor Co sliding 1.3 percent, Subaru Corp falling 1.5 percent, while electronic appliance maker Panasonic Corp shed 2.2 percent and chip-making equipment manufacturer Advantest Corp was down 2.5 percent. Oil and mining stocks outperformed after oil prices hit their highest since December 2014. Inpex Corp added 0.2 percent, Japan Petroleum Exploration Co gained 2.0 percent and Showa Shell Sekiyu advanced 1.3 percent.

In Currency Markets the US dollar traded to a three-year low against its peers on Thursday after falling on comments by U.S. Treasury secretary Steven Mnuchin that he welcomed a weaker currency, while the euro was firm ahead of the European Central Bank’s policy decision. The single currency extended its overnight rally to $1.2425, up 0.15 percent and going as high as $1.2428, its strongest since December 2014. The U.S. currency was 0.1 percent lower at 109.105 yen, after falling 1 percent the previous day to a four-month trough of 108.965. The Australian dollar traded at $0.8054 advanced to a four-month high of $0.8086. The New Zealand dollar was 0.55 percent higher at $0.7381, but off a five-month peak of $0.7437 after data showed the country’s consumer prices rose at a slower-than-expected pace in the fourth quarter.

In Commodities Markets brent oil prices hit $71 per barrel on Thursday for the first time since 2014 as the dollar continued to weaken and crude inventories in the United States fell for a 10th straight week amid ongoing supply cutbacks by OPEC and top producer Russia. Brent crude futures, the international benchmark for oil prices, hit a session high of $71.05 per barrel – the highest since early December 2014 – before falling back to $70.99. That was still up 46 cents, or 0.7 percent from the last close. U.S. West Texas Intermediate (WTI) crude futures climbed to $66.35 per barrel, also the highest level since early December 2014, and last traded at $66.26. That was still up 1 percent from the last settlement. Both crude benchmarks have risen by almost 60 percent since the middle of last year.

In US Equity Markets the S&P 500 was little changed on Wednesday while the Nasdaq lagged in choppy trading in the wake of comments by U.S. Commerce Secretary Wilbur Ross which hinted at action against China in a trade war. Bank stocks were among the gainers. The S&P financial index rose 0.68 percent as the best performing of the major sectors. The S&P 500 lost 0.06 percent, to 2,837.54 and the Nasdaq Composite fell 0.61 percent, to 7,415.06. Semiconductor stocks were off 2.31 percent and pulled the Nasdaq lower as Texas Instruments fell over 8.50 percent after it posted the slowest revenue growth in four quarters on softer demand for its chips used in communications equipment. Abbott Laboratories  jumped 4.20 percent after quarterly profit and 2018 adjusted earnings forecast beat estimates.

In Bond Markets U.S. Treasury debt prices fell on Wednesday, after Treasury Secretary Steven Mnuchin backed a weaker dollar to help boost America’s global trade, breaking from the traditional strong currency policy of past administrations. U.S. 30-year bond yields, which move inversely to prices, rose to their highest in more than three months, while those on 10-year and 2-year notes touched session highs. U.S. 10-year Treasury yields rose to 2.652 percent, from 2.622 percent while 30-year bond yields hit a 3-1/2-month peak of 2.956 percent and closed at 2.933 percent, up from 2.902 percent on Tuesday. JGB benchmark 10-year yield rose 1 basis point to 0.0805 percent and the 30-year yield was 0.5 basis point higher at 0.825 percent.

Today’s inflection points

• 13:45 GMT+1 EUR ECB’s monthly asset purchase target
• 13:45 GMT+1 EUR ECB announces deposit rate
• 13:45 GMT+1 EUR ECB announces deposit rate
• 14:30 GMT+1 EUR ECB’s Draghi speaks at press conference
• 14:30 GMT+1 USD Advance goods trade balance
• 14:30 GMT+1 USD Initial jobless claims
• 14:30 GMT+1 CAD Retail sales
• 16:00 GMT+1 USD New home sales