European investors respond to the news that the European Central Bank is being repaid €137 billion from the region’s banks on January 30 . The European Central Bank announced that on January 20, 278 European banks will repay €137 billion of the of the €489 billion in loans obtained during December of 2011 as part of the long-term refinancing operations, or LTRO (NYSEARCA:VGK).  Investors were enthusiastic about the fact that the banks were making a repayment on the first tranche of loans on the earliest day permitted under the program.  A second tranche of three-year loans totaling €530 billion was obtained by the banks from the ECB in February of 2012. The Ifo Institute reported that its Business Climate Index for German Industry  jumped to 104.2 in January from December’s 102.4.  The result provided a huge boost to the nation’s stock prices (NYSEARCA:EWG). Britain’s Office for National Statistics reported that the nation’s GDP contracted by 0.4 percent during the fourth quarter of 2012 compared with the third quarter (NYSEARCA:EWU).  Many economists now believe that England is headed toward a “triple-dip” recession.  England Swings As of 11:19 EST, the Euro STOXX 50 Index climbed 0.64 percent to 2,740 – staying well above its 50-day moving average of 2,627.  After breaking above its resistance level of 2,700 on Monday, the STOXX 50 is once again attempting a sustained advance above that level, which has been a barrier since the beginning of the new year.  Its Relative Strength Index is 63.07 (NYSEARCA:FEZ).  The FTSE 100 Index advanced 0.13 percent to 6,272 (NYSEARCA:EWU).  The German DAX Index jumped 1.31 percent to 7,849 (NYSEARCA:EWG).  France’s CAC 40 Index climbed 0.52 percent to 3,771 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index rose 0.41 percent to 8,701 (NYSEARCA:EWP).  Italy’s FTSE MIB Index declined 0.22 percent to 17,718 (NYSEARCA:EWI). As of 11:27 EST, the euro advanced 0.60 percent against the dollar, trading at $1.3456 (NYSEARCA:FXE).   Bullish Pattern Continues to Push the Euro Higher! Spain’s ten-year bond yield declined to 4.94 percent on Friday from Thursday’s closing level of 5.00 percent.  Spain’s two-year bond yield dropped to 2.44 percent on Friday from Thursday’s closing level of 2.48 percent (NYSEARCA:EWP). Italy’s ten-year bond yield declined to 4.15 percent on Friday from Thursday’s closing level of 4.18 percent (NYSEARCA:EWI). On London’s ICE Futures Europe Exchange, March futures for Brent crude oil declined by 22 cents (0.19 percent) to $113.06/bbl. (NYSEARCA:BNO, NYSEARCA:USO). February Gold futures declined by $9.70 (0.58 percent) to $1,660.20 per ounce (NYSEARCA:GLD).   Gold Retreats, Re-tests 200 DMA In Japan, a report that core inflation fell by 0.2 percent on a year-over-year basis in December cleared the way for more efforts by the Bank of Japan to reach its 2 percent inflation target.  As a result, the yen sank and stocks soared (NYSEARCA:FXY).  The Nikkei 225 Stock Average skyrocketed 2.88 percent to 10,926 (NYSEARCA:EWJ). In China, the commodities and financial sectors had a bad day, bogging down the entire market.  The Shanghai Composite declined 0.49 percent to 2,291 (NYSEARCA:FXI).  Hong Kong’s Hang Seng Index dipped 0.08 percent to 23,580 (NYSEARCA:EWH). American stock index futures trading was in positive territory ahead of Friday’s opening bell following positive quarterly earnings reports from Proctor & Gamble (NYSEARCA:PG), Microsoft (NASDAQ:MSFT) and Starbucks (NASDAQ:SBUX).  The March 13 Dow Jones Industrials future advanced 0.17 percent to 13,804 as of 9:14 EST.  The March 13 S&P 500 future rose 0.23 percent to 1,495 (NYSEARCA:SPY).  The March 13 Nasdaq 100 future climbed 0.31 percent to 2,726. Bottom line: European investors were encouraged by the ability of the region’s banks to begin prompt repayment of the €1 trillion in loans obtained by way of the LTRO program. Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.