Asia

Indonesia's Q4 GDP Likely Contracts 1.4-2%. Indonesia's economy contracted by 1.4% to 2.0% in the fourth quarter from the previous three months, though full-year growth was 5.7%, Finance Minister Chatib Basri said on Monday. "Leading indicators in Q4 showed loan growth started slowing, a decline in cement sales, a slow down in import of capital goods and a decrease in oil lifting," Basri said. He also said the current-account deficit, which has been a major worry for investors, will be 3.5-3.7% of gross domestic product (GDP) in 2013 and decline to 2.7-3.2% in 2014. "The policy taken by the government since August to ease current account deficit has shown results," Basri said. (Reuters)

India Services Sector Downturn Worsens In Dec, Hiring Picks Up. Activity in India's services sector shrank at a faster pace last month as new orders dwindled, but firms hired at their fastest in five months, a survey showed on Monday. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, fell to 46.7 in December from 47.2 in November. The December reading is the lowest in three months, and the index has now stayed below the 50 mark that divides growth and contraction for the sixth straight month. (Reuters)

USA

US Senate Confirms Janet Yellen To Lead Federal Reserve. The US Senate has confirmed Janet Yellen as the next head of the US Federal Reserve. Fifty-six senators voted in favour of Ms Yellen with 26 opposed - many members of the chamber were unable to attend the vote because of bad weather. It was the last procedural hurdle the 67-year-old had faced before taking over from outgoing chair Ben Bernanke on 1 February 2014. She is the first woman to lead the central bank in its 100-year history. (BBC)

Services In U.S. Grow At Slower Pace Than Forecast. Service industries unexpectedly grew at a slower pace in December, a sign that some parts of the U.S. economy are improving in fits and starts. The Institute for Supply Management’s non-manufacturing index fell to a six-month low of 53 from 53.9 in November, the Tempe, Arizona-based group reported today. The median projection in a Bloomberg survey of economists was 54.7. Readings above 50 indicate growth in the industries that make up almost 90 % of the economy. (Bloomberg)

Europe

Euro Zone Economic Recovery Gathers Steam. The euro zone's economic recovery showed signs of gathering pace Monday as services and manufacturing activity in the region expanded in December, according to the latest data from analysis firm Markit. Euro zone composite purchasing managers' index (PMI) data showed that activity in the sectors rose to 52.1 in December, up from 51.7 in the previous month. A reading above the 50-point mark indicates expansion. While German final composite PMI fell slightly in December, to 55.0 from 55.4 in November, the numbers remain firmly in expansion territory. The same cannot be said for France, however, whose negative trend accelerated in December with the final composite PMI falling to 47.3, from 48.0 in November. The periphery also showed a diverging picture. While Italy's all-sector output fell to a two-month low, Spain continued on an upward trajectory, recording a 77-month high in all-sector output in December, Markit said. (CNBC)

UK: Service Sector Growth Slowed In December, PMI Survey Says. Growth in the UK services sector eased in December but business optimism remains high, according to a survey. The purchasing managers' index compiled by Markit found that service sector activity fell to a six-month low of 58.8 points, down from 60 in November. But that is still above the 50 mark that separates growth from contraction. Business confidence rose to 73.5, its highest since March 2010. A survey from Lloyds said UK business confidence was at a 20-year high. (BBC)

Currencies

Dollar Drops After ISM Service-Sector Data. The dollar fell against other major currencies on Monday after a December reading on the U.S. services sector came in below market expectations. The ICE dollar index — a gauge of the U.S. unit against a trade-weighted basket of six other currencies — moved lower to 80.664 from 80.882 late Friday in North America. The euro moved higher to $1.3631 from $1.3583 late Friday in North America, when it dropped below $1.36 for the first time since Dec. 4, according to FactSet data. The British pound was at $1.6400 versus $1.6407 late Friday. The dollar fell to ¥104.17 from ¥104.77 late Friday. The Australian dollar edged up to 89.65 U.S. cents from Friday’s level of 89.44 U.S. cents. (Market Watch)

Commodities

Brent Crude Finishes Lower; Libyan Supply In Sight. Oil prices seesawed on Monday, ending the session slightly lower, as traders weighed reports of production resuming at a Libyan oilfield against new threats to shipments from a port controlled by protesters. Brent crude futures for February ended lower for the fifth straight session, losing 16 cents to settle at $106.73, after earlier climbing over $1 to a session high of $107.96. The international benchmark recovered in post-settlement trading, up 18 cents to $107.07 by 3:14 p.m. EST (2014 GMT). U.S. crude fell 53 cents to settle at $93.43 per barrel. The contract lost $1.48 a barrel on Friday and posted its biggest weekly drop since June 2012. (Reuters)

Gold Shakes Off Early Tumble And Rises As Shares Ease. Gold prices rose on Monday, shaking off an unusual and sudden tumble earlier in the session, with weakness on Wall Street extending bullion's rally to a third consecutive session. Spot gold was trading up 0.3 % at $1,239.39 an ounce at 3:20 p.m. EST (2020 GMT), having earlier hit a one-week high of $1,248.30. Among other precious metals, silver was up 0.1% at $20.15 an ounce. Platinum rose 0.3 % to $1,413, while palladium climbed 1.3 % to $734.25. (Reuters)