US: Chicago PMI improves unexpectedly to 56.8 in February

Italy's bond auction aside, the market was also encouraged by some better-than-expected US pending home sales for January (+4.5% v +1.9% m/m expected) although Durable goods orders (-5.2% v -4.8%) fell more than expected. The core part of the release was stronger though. Markets sentiment was also supported by chatter that White House will hold a meeting to discuss the Sequester on Friday. According to Politico, the White House has invited John Boehner, Mitch McConnell, Harry Reid and Nancy Pelosi for a meeting tomorrow.