European banks surged yesterday, leading other industry sectors, as reports that German Commerzbank was halfway to plugging a capital holes led European equities higher for a 4th straight session.  The Italian MIB and Spanish IBEX were the market leaders, rising 2.45% and 2.17% respectively.  French and Spanish shorter-dated bond issues were stronger than expected as Spain auctioned €6.6 billion versus €4.5 targeted.  Yields on longer-dated debt decreased, but shorter dated 2016 bills saw an increase in yield.  Meanwhile, Greek 1 year bonds are yielding over 466% as Greece moves closer to default and creditors have raised the possibility of going to court with the government over any restructuring that is unfavorable to bondholders.  EURUSD has moved higher with risk sentiment, rising to 1.2970 before pulling back to 1.2964.   
Asian stocks continue to move higher as strong European bond sales buoy markets.  China is considering easing lending restriction and capital requirements from banks to spur growth which fueled a copper, rising to $3.8270 before pulling back to $3.8033.  Canada has also pledged to sell its oil to Asia after the Keystone XL pipeline was not approved by the Obama Administration.  Commodities, including cocoa and sugar as also higher with sugar rising 2.54% on supply concerns and cocoa strengthening 2.43%.  The Australian dollar has continued to slide, trading at 1.0406 or -0.1279% as the worst unemployment rate since 1992 boosts the possibility of rate cuts from the central bank.  The ASX is up marginally in light trading, adding 0.32% to 4228.20.  The New Zealand Kiwi also dropped from an 11-week high on an unexpected decline in consumer prices, moving lower to 0.8018.
U.S. equity markets moved marginally higher yesterday after better than expected economic data.  The strongest piece of the data was the unemployment figures, which saw Initial Jobless Claims drop substantially to the lowest levels since 2008.  The Philly Fed Manufacturing rose slightly, although less than forecast, signaling expanded manufacturing, but expansion at a declining pace as the underlying driver was of growth slows.  Housing starts were weaker, declining 4.1%, reflecting a further slump in new homes breaking ground.  Morgan Stanley and Bank of America had better than expected earnings propelling bank shares higher, while Google missed analyst forecasts after declines in Europe.  Equities were led higher by the Nasdaq again, rising 0.67%, compared with a 0.49% rise in the S&P and 0.36% increase in the Dow Jones Industrial Average.