Asia

Thai Consumer Confidence Falls Again As Crisis Continues. Thailand's consumer confidence dropped for a 10^th straight month in January, a survey showed on Thursday, as the prolonged political crisis is making Thais reluctant to spend, adding to the country's economic problems. The consumer confidence index calculated by the University of the Thai Chamber of Commerce (UTCC) slid to 71.5 in January, the lowest level since November 2011, from 73.4 in December. "People are very concerned about their future," UTCC economics professor Thanavath Phonvichai told a news conference. "The economy has not reached its bottom yet." A UTCC statement said consumers' consumption "is likely to fall further at least until late in the second quarter because the economy is slowing and there is no sign of recovery yet...confidence should pick up once the political situation eases but it's not clear when that will happen." (Reuters)

Philippines Holds Rate At Record Low On Inflation Pressure. The Philippines held interest rates at a record low for a 10th straight meeting to boost growth, even as it said inflation risk remains elevated. Bangko Sentral ng Pilipinas kept the rate it pays lenders for overnight deposits at 3.5 percent, according to a statement in Manila today, as forecast by 16 of 17 economists surveyed by Bloomberg News. One predicted an increase of a quarter of a percentage point. (Bloomberg)

USA

Jobless Claims In U.S. Decreased 20,000 Last Week. Applications for U.S. unemployment benefits fell for the first time in three weeks as employers retained workers to meet demand. Jobless claims dropped by 20,000 to 331,000 in the period ended Feb. 1, the Labor Department reported today in Washington. The median forecast of economists surveyed by Bloomberg called for a decrease to 335,000. (Bloomberg)

Trade Gap Shrank In 2013 As U.S. Fuel Exports Climbed. The U.S. trade deficit in 2013 was the smallest since 2009, even as it ticked up at year’s end, as rising fuel exports and falling imports propelled the world’s biggest economy further toward energy independence. The gap narrowed to $471.5 billion last year, the lowest since 2009, from $534.7 billion in 2012, figures from the Commerce Department showed today in Washington. The balance on petroleum products shrank 20.2 percent, also the biggest decline in four years. (Bloomberg)

Increase In U.S. Productivity Helps To Restrain Labor Costs. The productivity of U.S. workers rose more than projected in the fourth quarter as the world’s largest economy expanded, helping to restrain labor costs. The measure of employee output per hour increased at a 3.2 percent annualized rate, after a revised 3.6 percent gain in the prior three months that was more than initially reported, a Labor Department report showed today in Washington. The median forecast in a Bloomberg survey of economists called for a 2.8 percent advance in the fourth quarter. Expenses per worker decreased at a 1.6 percent pace, more than estimated. (Bloomberg)

Europe

German Factory Orders Unexpectedly Decline On Domestic Demand. German factory orders unexpectedly declined in December on weaker domestic demand, signaling that companies in Europe’s largest economy remain hesitant to invest as surrounding nations struggle to sustain a recovery. Orders, adjusted for seasonal swings and inflation, dropped 0.5 percent from November, when they rose a revised 2.4 percent, the Economy Ministry in Berlin said today. Economists forecast a gain of 0.2 percent, according to the median of 39 estimates in a Bloomberg News survey. Orders surged 6 percent from a year ago when adjusted for the number of working days. (Bloomberg)

ECB Rejects Deflation Fears As It Holds Rates At 0.25%. The head of the European Central Bank (ECB) has said deflation is not a threat to the Eurozone economy. The ECB kept its benchmark interest rate at 0.25% after its latest meeting. The rate was cut to its current record low in November. ECB president Mario Draghi said: "We have to dispense with this idea of deflation. The question is - is there deflation? The answer is no." Eurozone inflation slowed to 0.7% in January from 0.8% in December. (BBC)

UK Interest Rates Remain On Hold. UK interest rates have been kept unchanged at their record low of 0.5% by the Bank of England. The Bank's Monetary Policy Committee (MPC) also left the £375bn quantitative easing stimulus programme unchanged. Analysts now hope that the Bank will use next week's inflation report to signal changes to its policy of forward guidance. There had been speculation that the Bank would issue a statement alongside the latest interest rate decision. However, in announcing the hold in rates and quantitative easing, the MPC said it, "reached its decisions in the context of the monetary policy guidance announced alongside the publication of the August 2013 Inflation Report". (BBC)

Currencies

Euro, Dollar-Yen Hit February Highs. The dollar on Thursday rose to its highest level against the yen in February, while the euro strengthened after the region’s top central banker dismissed the threat of deflation in the euro zone, prompting questions about future easing actions. The euro rose to 1.3588 from $1.3536 late Wednesday. The dollar rose to ¥102.10 from ¥101.45 late Wednesday, hitting its highest level since Jan. 30. ICE dollar index , which tracks the U.S. unit against six other currencies, fell to 80.901 from 81.054 late Wednesday. The British pound rose to $1.6323 from $1.6309. The Australian dollar headed higher to 89.62 U.S. cents from 89.11 U.S. cents in the prior session. (Market Watch)

Commodities

Oil Gains For A Third Day. Oil futures close lower on Thursday for a third day in a row as a drop in U.S. jobless claims and strength in U.S. equities supported an upbeat outlook for energy demand. March crude oil picked up 46 cents, or 0.5%, to settle at $97.84 a barrel on the New York Mercantile Exchange. On Wednesday, the contract rose 0.2%. On ICE Futures Thursday, Brent crude oil for March delivery rose 94 cents, or 0.9%, to $107.19 a barrel. Prices on Wednesday rebounded after three consecutive sessions of declines. (Market Watch)

Gold Eases As U.S. Equities Rally, Nonfarm Payrolls Eyed. Gold prices fell slightly on Thursday as Wall Street rallied, but losses were limited by the euro's gain versus the dollar and caution ahead of the key U.S. nonfarm payrolls report on Friday. Spot gold was down 30 cents at $1,257.35 an ounce by 2:28 p.m. EST (1928 GMT). Platinum was down 0.4 percent at $1,370.82 an ounce. Silver edged up 0.3 percent to $19.92 an ounce after its previous session's 2 percent gain - its biggest one-day jump in nearly a month. Palladium eased 0.3 percent to $698.60 an ounce. (Reuters)