Oil prices surge as Saudi minister says market is “calm”

•     Oil prices surge as Saudi minister says market is “calm”

–    But large rise in US inventories suggests supply is still outweighing demand

•     ECB Chief economist says ECB may raise growth forecast

–    Follows rise in French consumer sentiment, strong German GDP

–    Suggests ECB on hold for some time = won’t be driving EUR as it did in 2014

•     Australian capital spending disappoints

–    AUD weakens on the news

–    NZD shrugs off unchanged milk payout forecast

•     Today:

–    Eurozone: Eurozone M3 money supply growth expected to accelerate; will lending finally rise on a yoy basis? German Gfk consumer confidence & unemployment

–    UK:  2^nd estimate of Q4 GDP expected to be same as 1^st estimate

–    US: Headline CPI for January expected to fall into deflation (-0.1% yoy); core expected to be unchanged @ +1.6% yoy

–    Canada:  CPI for January expected to decelerate, fall below the lower bound of BoC’s 1%-3% target range