Market Review By TraderXP: 

Oil fell as accelerating Chinese inflation reinforced fears that economic incentives can be eliminated. The spread between oil in New York and London has narrowed to least in almost four months.
Futures fell 0.3 percent after the Chinese government said that prices rose the most in seven months. Discount West Texas Intermediate crude oil traded in New York, London Brent fell after Enterprise Products Partners LP and Enbridge Inc. has completed the expansion of marine pipelines, providing access to records of supply in the central U.S.
"If China's inflation accelerated, may be less room for the stimulus, which would cool the demand for oil in China," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. "There must be a lot of oil to go to the Gulf Coast. We need to see the spread continue to come quickly."

Market News

Attention is drawn to the financial income
After over a month of observation Capitol Hill and Pennsylvania Avenue, Wall Street can return to what he knows best: Wall Street.
The first full week of earnings season is dominated by the financial sector - the big banks, investment and commercial banks - both private investors, free of "financial cliff" concerns, began to return to the markets.
Shares rose in the new year by joining after initial approval of the financial cliff in Washington on January 2. S & P 500 on Friday closed its second straight week of income, leaving him only with a five fractional closing high hit on Thursday.
An array of financial companies - including Goldman Sachs and JPMorgan Chase, said Wednesday. Bank of America and Citigroup joined on Thursday.
"The banks have to be read on the economy, on consumers' health, the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.
"What we are looking for demand. Demand from small business owners to consumers."
PROFIT AND ECONOMIC EXPECTATIONS
Investors have been met with little more than expected, the first week of earnings, but expectations were low and only a few companies reported their results.
Fourth-quarter profit and revenue for the S & P 500 companies are expected to have grown by 1.9 percent last quarter, according to Thomson Reuters.
Several major corporations have already reported, with Wells Fargo Bank for the first out of the gate on Friday, post record profits. The bank, however, made fewer mortgage loans than in the third quarter, and its shares fell 0.8 percent during the day.
KBW bank index, the gauge of U.S. bank shares, is up 30 percent from a low hit in June, growth in six of the past eight months, including January.
Investors will continue to see revenue on Friday as General Electric will complete the week after Intel report on Thursday.
Housing, industrial DATA takeaway
Next week will also feature the release of a wide range of economic data.
Tuesday will see the release of retail sales and the production index of Empire State, and then the CPI data on Wednesday.
Investors and analysts will also focus on new housing numbers and the Philly Fed factory activity index on Thursday. Thomson Reuters / University of Michigan consumer sentiment numbers due on Friday.
Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see the number of housing continues to grow.
"They will not be that surprising if they are good, they will be very attractive ifthey're not good," he said. "The main drive in the markets, I think the economic data., Who was the catalyst."
POLITICAL ANXIETY
Concern over the protracted negotiations financial markets drove the cliff a few weeks to a final resolution on January 2, but the fear of the debt ceiling fight still command the attention of investors to the same extent.
The agreement is likely one of the reasons for the rebound in the flow of the stock. U.S. stock mutual funds were $ 7.53 billion after the break permission for the week ending Jan. 9, the most in a week since May 2001, according to Lipper Thomson Reuters.
Markets are unlikely to move on debt ceiling news if prominent lawmakers signalthat they make wonderful position in the debate.
Deal in Washington to prevent breakage created another debt fight, which will be playing in the coming months, along with the cost debate. But the alarm has been sounded before.
"The market will turn the corner on this, when the debate heats up," Krosby Prudential Financial said.
Volatility Index CBOE. VIX sensor alarm traders, more than 25percent off this month, and recently hit its lowest since June 2007, before the recession began.
"The market does not react to the same news twice. It will have to be more brutalthan financial cliff", Krosby said. "The market was due to the fact that, in the end, they come to an agreement." Reuters.com

Currencies

Euro soars to highest against the dollar since April, the effects Draghi
The euro on Friday catapulted to the highest levelagainst dollar since April 2012, the day after the European Central Bank chief Mario Draghi set bullish tone, without giving any indication wouldease Bank monetary policy.
Headed the ECB meeting on Thursday was market participants fear that Draghiwould signal rates in coming months, but instead he gave no hint that they were considering rate cut in the near future, which was a signal to buy for some investors.
0.5 percent growth in the euro added to the 1.6 percent advance on Thursday, the biggest daily gain in five months. Draghi said after the ECB left its key interest rate unchanged at 0.75 percent.
"The market reacted positively to the absence of any talk of potential interest rate reduction or introduction of additional liquidity," said Gareth Sylvester, director of Klarity FX in San Francisco.
"However, we still feel that the debt crisis in the eurozone story so far the role in 2013, and, accordingly, we find little evidence to support further EUR strength in the medium term," he said.
The euro rose to $ 1.3365 and last traded at $ 1.3334, up 0.5 percent on the day.
"The euro at $ 1.3450 / $ 1.3500 remain clear targets price, but in the medium term we are for going back to the $ 1.2600/1.2700 area," he said.
The single currency shared by 17 countries, and reached its highest level since December 2011 against the Swiss franc.
Against the yen, the euro hit a peak of 119.32 yen, touching its highest level since May 2011. This is the last trading at 118.94, up 1 percent on the day.
While U.S. data was negligible effect on trade that has not stopped the appetite for risk.
The U.S. trade deficit unexpectedly rose in November, offering resistance to economic growth, although the increase was due to the rupture of a surge in consumer goodsimports, which gives a positive signal for consumer spending.
Currency speculators reduced their bets against the U.S. dollar in recent weeks, according to the Commodity Futures Trading Commission released on Friday.
Value of the net short position against the dollar fell to $ 6.96 billion in the week ended Jan. 8, from $ 9.43 billion in the previous week.
"In general, the news in the last 24 to 48 hours, were mostly negative for the dollar and positive for foreign currencies," said Nick Bennenbroek, head of currency strategy at Wells Fargo in New York.
"While this may be a slight surprise that the U.S. dollar does not show a consistent weakness, we suspect the short term trend is still lower for the dollar against most foreign currencies," he said.
YEN firmly FOCUS
The focus of the market, with the ECB concluded is the yen, as investors continue to argue about in advance in U.S. currency 2-1/2-year high was too far and too fast, given the prospects of further easing by the Bank of Japan.
According to analysts, the current weakness of the yen is likely to continue.
Analysts said such failures in the dollar / yen rate was only temporary, with the general trend weak yen intact. Some expect to see the dollar above 90 yen in the coming months.
Ian Stannard, head of European FX strategy at Morgan Stanley in London said the kickbacks in the dollar / yen was very small and it highlights the strength of this trend.
"The pace of growth is not only (in the dollar / yen), but the pace of political reform in Japan exceed the expectations of the market," said Stannard.
"As a result, we have increased our forecast further ... looking for the dollar / yen to move to the 95 level by the end of this quarter."
Yen was dipping from November on speculation the Bank of Japan may ease policy further. Analysts expect the Bank of Japan to adopt an explicit 2 per cent inflation target at its policy meeting on January 21-22, to fall in line with the objectives of the government.
The dollar rose higher than 89.44 yen on Friday, its strongest since June 2010, after the government of Prime Minister Shinzo Abe, approved $ 117 billion fiscal stimulus package, the largest since the financial crisis.
The dollar was last at 0.5 percent 89.18 yen, according to Reuters. Reuters.com