20100423 0919 Global Economic News.

US sales of existing single-family homes, town homes, condominiums and cooperatives jumped 6.8% in March to a 5.35m annual rate, while inventories of unsold houses improved after a February surge, the National Association of Realtors reported. (Xinhua)

US initial jobless claims fell for the first time in 3 weeks. There were 456,000 initial jobless claims filed in the week ended April 17, down 24,000 from a revised 480,000 the previous week. Economists surveyed had expected new claims to fall to 450,000 in the latest week. The number of new claims was the lowest since the 442,000 reported in the week ended March 27.

• The number of people filing continuing claims totalled 4,646,000 in the week ended April 10. That figure was down 40,000 from the preceding week's revised 4,686,000 claims, and slightly above the 4.6m economists expected. (CNN Money)

US producer prices rose more than forecast in March, boosted by higher costs for energy and the biggest gain in food prices since 1984. The 0.7% increase in prices paid to factories, farmers and other producers followed a 0.6% drop in February. Excluding fuel and food, so-called core prices rose 0.1% for a second month, restrained by cheaper autos and appliances. (Bloomberg)

Federal Reserve supervisors are telling about two dozen of the largest US banks they must do more to end pay practices that encourage excessive risk-taking and are ordering boards to step up scrutiny of incentives, according to three people briefed on the discussions.

• Fed officials met in recent weeks with executives and board members and told them to submit plans for repairing deficiencies in how they monitor pay. Firms in the Fed’s review program include Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley, one of the people said. (Bloomberg)

The Federal Reserve banks transferred an extra-large payload to the US Treasury last year, as they reaped interest from Wall Street bailouts. The 12 Federal Reserve banks reported that their 2009 income totalled US$53.4bn, a jump of US$17.9bn from the year before. The board of governors of the Federal Reserve system attributed this increase to a surge in the holding of mortgage-backed securities to prop up the devastated housing market. (CNN Money)

Europe’s services and manufacturing industries expanded more than economists forecast in Apr 10 as an export-led recovery prompted companies to step up production. The composite purchasing managers’ index rose to 57.3 in April (55.9 in March), the highest since Aug 07. Economists forecast an unchanged reading, the median of estimates in a survey showed. (Bloomberg)

The euro area’s budget deficit widened to more than double the European Union’s 3% limit in 2009, led by Greece and Ireland. The total budget gap for the 16-nation euro region widened to 6.3% of gross domestic product last year, the biggest since the introduction of the euro in 1999, from 2% in 2008. At 14.3% of GDP, Ireland had the largest shortfall, while Greece’s deficit was 13.6%. (Bloomberg)

Thailand’s exports rose the most in 20 months in Mar 10 as overseas demand for electronics and agricultural products helped support an economy threatened by political unrest. Shipments climbed 40.9% yoy in March (23.2% in Feb) to US$16.25bn last month. The median estimate in a survey was for a 33.2% gain. (Bloomberg)

Hong Kong’s inflation rate fell in March after Lunar New Year celebrations helped drive price gains to a 13-month high in February. Prices rose 2% in March (2.8% in Feb), matching the median estimate in a survey. (Bloomberg)

The Philippine central bank said it will consider raising interest rates in the coming months as it boosts inflation forecasts amid an economic recovery. Bangko Sentral ng Pilipinas pared a lending program for banks by reducing the budget for its so-called rediscounting facility to PHP20bn pesos (US$450m) from PHP40bn, effective 3 May. Policy makers kept the benchmark interest rate at a record-low 4%. (Bloomberg)

Indonesia’s bank lending growth may reach 20% this year, or the higher end of the central bank’s forecast of between 18%-20%, Bank Indonesia Deputy Governor Muliaman Hadad said. (Bloomberg)