Global

· Eurozone Growth Gaining Pace, Others Stable. The eurozone is increasingly contributing to an improvement in global economic growth prospects, according to a forward-looking indicator the Organisation for Economic Co-operation and Development published on Monday. The OECD said its leading indicator, designed to detect changes in economic prospects, showed "positive change in growth momentum in the euro area and stable growth momentum in most other major economies and the OECD area as a whole." The indicator, expressed as an index where 100 denotes the long-term average, rose to 100.7 for the euro zone as a whole from 100.6 in the preceding month's report, and rose also for the OECD group of mostly wealthy economies, to 100.4 from 100.3. The U.S. reading was stable at 100.2 and for Japan it stayed at 99.8. In large non-OECD economies, the index rose to 99.1 in China from 99.0. It edged higher too in Brazil and India but fell in Russia to 99.3 from 99.5. Within the euro zone, the reading for Germany rose to 99.7 from 99.6 while in France it rose to 100.6 from 100.5. It nudged higher too in Italy, to 101.2 from 101.0. (Reuters)

Asia

· Taiwan February Exports Disappoint, but Cheaper Imports May Help Economy. Taiwan's exports fell more than expected last month as the Lunar New Year holiday shortened the number of working days at factories and weaker commodity prices hit trade. However, modest gains in exports of electronic goods, improving demand from key markets and the falling cost of imports are likely to support growth for the domestic economy. The island's exports in February fell 6.7% from a year earlier, exceeding a 1.03% decline expected in a Reuters poll. For the first two months of the year, exports were down 1.3%, Ministry of Finance data issued Monday showed. Imports fell a sharper 22.4% last month, compared with expectations for a near 6% decline. (Reuters)

· Japan Service Sector Sentiment Improves in February. Japan's service sector sentiment index rose to 50.1 in February, up for a third straight month, a Cabinet Office survey showed on Monday. The survey of workers such as taxi drivers, hotel workers and restaurant staff - called "economy watchers" for their proximity to consumer and retail trends - showed their confidence about current economic conditions rose from 45.6 in January. The Cabinet Office said the economy is in a moderate recovery trend although there is some weakness. That compared with its previous view that the economy was showing weakness in its recovery. The outlook index, indicating the level of confidence in future conditions, advanced to 53.2 in February from 50.0 the previous month. (Reuters)

USA

· Labor Market Conditions Index Slows in February. The Fed's Labor Market Conditions Index remained positive in February but decelerated to 4 in February from 4.8 in January. This was despite stronger-than expected payroll gains this past Friday. One area of weakness likely was soft wage growth. The Fed's Research Department does not give details on this unofficial report. While the employment situation's payroll numbers have some analysts suggesting a June rate hike by the Fed, today's LMCI indicates that there may be considerable debate within the Fed on "liftoff" timing-especially since inflation is very sluggish. (Econoday)

· Home-Price Expectations are Cooling, Survey Finds. Expectations of home-price growth have slowed to their lowest level in at least a year and a half, according to a survey of consumers released Monday. The New York Fed’s monthly survey found that expectations in February were for 3% home-price growth in a year’s time. That’s the lowest level since the survey’s inception in July 2013, and compares with 3.4% in January. Home-price expectations have slowed for the third straight month, and now are below the 2014 average of 3.8%. Out West—which has been the strongest region for homeprice growth—expectations slowed to 4% growth from 4.8% in January. (MarketWatch)

Europe

· German Exports Post Biggest Drop in Five Months in January. German exports fell by the largest amount in five months in January, dropping more than forecast and putting a slight damper on the outlook for Europe's largest economy, though economists said a weak euro and cheap oil would help in the months ahead. Seasonally-adjusted exports decreased by 2.1% on the month after a sharp rise in December, data from the statistics office showed. They missed the consensus forecast for a 1.5% drop and undershot even the lowest estimate for a 2.0% decline. The data for December was revised down to a 2.8% gain from a previously reported 3.4% increase. (Reuters)

· Bank Of France Cuts French First-Quarter Growth Forecast To 0.3%. The French economy is on course to grow 0.3% in the first quarter, the Bank of France said in its latest business survey on Monday, revising down its forecast from an earlier 0.4%. The central bank's business sentiment indicator showed a slight cooling in February to 96 from 98 in January, while sentiment in the services sector rose to 92 from 91. "Business leaders expect a more marked increase in industrial activity in March," it noted, adding that they also saw a strengthening of activity in services this month. (Reuters)

· Eurozone Sentiment Hits Seven-and-a-Half-Year High in March. Sentiment in the eurozone surged to its highest level in 7.5 years in March as investors heartened by the European Central Bank's bond-buying program brushed off concerns about the economic turmoil in Greece. Sentix research group's index tracking morale among investors and analysts in the euro zone climbed to 18.6, its highest level since August 2007, from 12.4 the previous month. That was far higher than the Reuters consensus forecast for a reading of 15.0 and beat even the highest estimate for 17.5. "The euro zone economy is showing definite signs of life," said Manfed Huebner, managing director at Sentix, adding that low oil prices and the weak euro were helping euro zone countries to get back on their feet. (Reuters)

· EU, Greece to Start Technical Loan Talks Wednesday. Warning Greece it had "no time to lose", eurozone ministers agreed technical talks between finance experts from Athens and its international creditors would start on Wednesday with the aim of unlocking further funding. "We've talked about this long enough now," an impatient-sounding Dutch Finance Minister Jeroen Dijsselbloem said after chairing Monday's meeting of euro zone colleagues, their first since Feb 20, when they extended Greece's bailout deal to June. "We only have four months," he said. "Let's get it done." The new left-wing Greek government, keen to show voters it is keeping election promises to break with EU-imposed austerity, has tried patience among its EU peers by arguing over the form and venue for detailed talks required to establish its needs and whether it has met conditions the creditors have set on reforms. (Reuters)

· Bank of France Cuts French Q1 Growth Forecast to 0.3%. The French economy is on course to grow 0.3% in the first quarter, the Bank of France said in its latest business survey on Monday, revising down its forecast from an earlier 0.4%. The central bank's business sentiment indicator showed a slight cooling in February to 96 from 98 in January, while sentiment in the services sector rose to 92 from 91. "Business leaders expect a more marked increase in industrial activity in March," it noted, adding that they also saw a strengthening of activity in services this month. President Francois Hollande's government expects growth of 1.0% this year after the 0.4% seen last year. In comments this month, Hollande has renewed his optimism that a tentative recovery is setting in. (Reuters)

Currencies

· Dollar Rally Stalls, Slips Back From 11.5-Year High vs. Euro. The dollar fell from an 11.5-year high versus the euro on Monday as investors took profits from gains made after last week's strong U.S. employment report helped cement expectations the Federal Reserve will raise U.S. interest rates this year. The euro held at $1.08540, up 0.07%, according to the EBS trading platform. It earlier fell to $1.0822 in Asian trade, marking the euro's weakest point since September 2003. The gap between U.S. Treasury yields and the euro zone widened, making U.S. investments more attractive for investors hunting for higher-performing and safe returns. The dollar's one positive spot comes against the yen, trading at 121.22 yen, up 0.31% and just off a fresh three-month high of 121.415. The greenback fell 0.21% to C$1.2593, or 79.41 U.S. cents, even after data showed Canadian housing starts plunged to their weakest since 2009 in February. (Reuters)

Commodities

· Oil in Biggest Weekly Drop Since January on Dollar, Rate-Hike Fear. Brent prices fell 2% on Monday pressured by European Central Bank bond-buying, while U.S. crude rose about 1% on a smaller-than-expected build in inventories at the key Cushing oil hub, leading to a narrowing gap between the two benchmarks. Brent's premium to U.S. crude, one of the biggest oil plays, narrowed to less than $9 a barrel, tripping up some traders who had bet the spread would expand this week after a recent 13-month high above $13. Brent settled down $1.20, or 2%, at $58.53 a barrel. U.S. crude finished up 39 cents, or 0.8%, at $50. (Reuters)

· Gold steadies as dollar pauses but further weakness seen. Gold steadied on Monday as the dollar rally paused and European shares fell, but it remained near a three-month low after a U.S. jobs report boosted expectations that the Federal Reserve would raise interest rates soon. Spot gold was up 0.1% at $1,166.72 an ounce by 2:30 p.m. EDT (1830 GMT), after marking its biggest daily loss on Friday since Oct. 1, 2013. Spot silver was down 0.5% at $15.86 after falling to its lowest in two months at $15.69 an ounce. Palladium was up 0.5% at $819.75 an ounce, while platinum was down 1% at $1,160.15 after falling to its lowest since mid-July 2009 at $1,142.50 an ounce. (Reuters)