GOOD MORNING. It's a strong morning for equities the world over. Stocks in Asia closed higher, European shares are rising and U.S. futures are pointing to a higher open.

Yesterday, the Federal Reserve reiterated that inflation is likely to remain subdued for some time. Today, the Labor Department s February producer price index provided support for that view. The overall index declined 0.6% in February, dragged by a 2.9% decline in energy prices. The headline PPI had risen 1.4% from December to January, its fourth month of increases, but most of that gain was the result of a 5.1% rise in energy prices. The overall index is still up 4.4% over the past 12 months. The core PPI, which excludes energy and food prices, rose a modest 0.1% in February, in line with expectations.

Some analysts use this report's data on prices for goods in earlier stages of processing as leading indicators for the direction of the consumer price index, and "broadly the message there is pretty comforting," says Keith Hembre, the chief economist at First American Funds. So far, the PPI hasn't provided much evidence of upward price pressure, nor have housing or labor costs risen, confirming the Fed's view that inflation will remain subdued, Hembre says.

IN OTHER NEWS:

• The central banks of Iceland and Japan announced further loosening of monetary policies. LINK | LINK
• Senate pressure may push the Obama administration to declare China a currency manipulator, Bloomberg reports. LINK
• Mall operator Simon Property Group (SPG) plans to offer an improved takeover bid for rival General Growth Properties (GGP), The Wall Street Journal reports. LINK