Overnight Developments

• Global stocks are mixed with the European DJ Stoxx 50 Index down -0.46% and March S&Ps up +2.20 points. The markets remain concerned that economic growth may falter as the Fed and ECB curb stimulus measures while other central banks such as Australia and China push up lending costs. The markets await the post FOMC announcement later this afternoon. European bonds fell after ECB Council member Weber said that policy makers may take further steps in the first half of this year to withdraw liquidity from the banking system. Banco Bulbao Vizcaya Argentaria SA, Spain's second-biggest lender, fell over 5% after it reported a 94% slump in Q4 net income to 31 million euros ($44 million), well below analysts' estimates of 1.05 billion euros in income as the bank wrote down goodwill on its US business and set aside more reserves for bad loans. Man Group fell nearly 5% as it has now declined for nine straight sessions, the longest losing streak in almost five years, wh ile SAP AG<>

• The Asian markets today closed lower with Japan down -0.71%, Hong Kong -0.38%, China -1.36%, Taiwan -0.51%, Australia -1.55%, Singapore -1.24%, South Korea -0.87%, India -2.92%. Chinese bank stocks closed lower and helped the Shanghai Stock Index slump to a 2-3/4 month low after the Securities Times reported that some Chinese banks were ordered to recall excess loans advanced this month in order to meet regulatory requirements. Mining companies declined as metals prices fell while Toyota Motor closed 4.3% lower in Japan after it announced plans to halt the sales of eight of its models involved in a recall. On the bright side, Dec Japan exports jumped +12.1% y/y, their first increase in 15 months as strong demand from China, Japan's biggest export market, is helping the country recover from recession. For all of 2009, Japan's exports fell 33%, the biggest drop since comparable figures were made available in 1979, while China surpassed the US as Japan's largest export market for the first time on an annual basis.