Fed Upgrades Economic Outlook While Affirming Bond Stimulus (Bloomberg)
Federal Reserve policy makers said U.S. growth is becoming more durable and higher energy prices will have a temporary effect on inflation as they affirmed plans to buy $600 billion of Treasuries through June.
Portugal’s Long-Term Bond Ratings Cut to A3 From A1 by Moody’s (Bloomberg)
Portugal’s long-term debt rating was cut two steps by Moody’s Investors Service, which cited a “subdued” growth outlook, risks to implementing the government’s deficit-reduction plans, and a possible need to recapitalize its banks.
Japanese nuke crisis sends Asian markets into meltdown
Japan’s escalating nuclear crisis has sent markets in Asia into a meltdown as fears grow over the outcome from the troubled nuclear facilities. As the scale of the disaster grows by the day and Japan prepares for the worst from its three troubled nuclear facilities, the Nikkei 225 stock average fell a staggering 10.55% or 1,015.34 points to 8,605.13 points yesterday as fear gripped investors across region. The Hong Kong stock index fell 2.86% or 667.93 points to 22,678.25 points. Malaysian investors followed suit with the FTSE Bursa Malaysia Composite Index (FMB KLCI) falling 11.21 points or 0.75% to close at 1,484.11 points as the ringgit fell to RM3.065 against the USD from RM3.036 on Monday’s close. (Malaysian Reserve)
Japan: Stock rout threatens deeper economic pain, pressures BOJ
The steepest tumble in Japan’s stocks in a quarter-century threatens to worsen damage to the economy from last week’s earthquake and tsunami in a crisis policy makers have yet to contain. The Nikkei 225 Stock Average fell 16% the past two days, the most since 1987, as power outages forced companies to suspend output and officials warned of rising risk of radiation from a nuclear plant. Bank of America-Merrill Lynch further cut its forecasts for gross domestic product, which shrank last quarter, and JPMorgan Chase & Co. may do the same.(Bloomberg)
South Korea: Unemployment rate increased to 4% in February
South Korea’s unemployment rate unexpectedly rose to 4.0% in February from 3.6% in January, Statistics Korea said in Gwacheon today. The median estimate in a Bloomberg News survey of eight economists was for a jobless rate of 3.6%.(Bloomberg)
US: Import prices jumped in February on oil, food
The cost of goods imported into the US rose more than forecast in February, led by further gains in commodities that companies are struggling to pass along to their customers. The 1.4% increase in the import-price index exceeded the 0.9% median estimate in a Bloomberg News survey and followed a 1.3% rise in January, Labor Department figures showed today in Washington. Expanding economies in Asia and Latin America are generating greater demand for raw materials, and turmoil in Libya has pushed up crude oil prices. (Bloomberg)
US: Fed upgrades economic outlook while affirming bond stimulus
Federal Reserve policy makers said US growth is becoming more durable and higher energy prices will have a temporary effect on inflation as they affirmed plans to buy USD600bn of Treasuries through June. US stocks pared losses on the upgraded outlook from Fed Chairman Ben S. Bernanke and his colleagues, who dropped language that the recovery is “disappointingly slow” and that “tight credit” is holding back consumer spending. Central bankers went out of their way to acknowledge a rise in commodity prices while dismissing any inflation danger.(Bloomberg)
US: Global demand for US assets fell on lower bond buying
Global demand for US stocks, bonds and other financial assets fell in January from a month earlier on declines in purchases of US Treasury securities, according to the government’s international capital data.Net buying of long-term equities, notes and bonds totaled USD51.5bn during January compared with net buying of USD 62.5bn in December, according to the TICS data released today in Washington by the Treasury Department. Including short-term securities such as stock swaps, foreigners purchased a net USD32.5bn compared with net buying of USD49.7bn the previous month.(Bloomberg)
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