DJIA chart reading : correction range bound upside biased.
Hang Seng chart reading : correction range bound upside biased.
G-7 Boosting Currency Reserves as UBS Sees Intervention Revival (Source: Bloomberg)
Group of Seven governments are boosting their currency reserves as strategists at UBS AG (UBSN) and Bank of New York Mellon Corp. (BK) detect the potential for more intervention to quell exchange-rate swings in coming years. G-7 finance ministers and central bankers meet in Washington tonight for the first time since uniting to sell yen on March 18, after avoiding such action for more than a decade.
Asian Stocks Fall as Japanese Exporters Drop on Stronger Yen; BHP Declines (Source: Bloomberg)
Asian stocks fell after the yen strengthened, adding to concern about the outlook for earnings for Japanese exporters, and as metal prices declined, dragging commodity shares lower.
Bernanke Urges Republicans to ‘Deal With’ Debt Without Backing Any Plan (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke urged Republicans during a dinner meeting yesterday to find a way to “deal with” the rising U.S. national debt without endorsing a specific plan, lawmakers who attended said.
U.S. Economy Expands as Labor Markets Improve, Fed Report Says (Source: Bloomberg)
The Federal Reserve said the economy expanded at a “moderate” pace across much of the U.S. in February and March, led by manufacturing, with labor markets showing improvements in most regions.
Deficit-Reduction Plan May Mark Positive Turning Point, Moody’s Hess Says (Source: Bloomberg)
President Barack Obama’s plan to cut $4 trillion in cumulative deficits within 12 years may be a “positive” for the nation’s credit quality and mark a reversal in the budget debate, according to Moody’s Investors Service. The U.S. is the only large AAA-rated country that saw its debt rise during the crisis that until recently had no plan that would reverse the trend, said Steven Hess, senior credit officer at Moody’s. Budget cuts would mean the U.S. wouldn’t likely sell as much debt, which has grown to $9.13 trillion in marketable Treasuries from $4.34 billion in mid-2007 as the government boosted spending to pull the economy out of recession.
Retail Sales in U.S. Rise for Ninth Straight Month as Job Market Brightens (Source: Bloomberg)
Sales at U.S. retailers rose in March for a ninth consecutive month, easing concern that the jump in food and fuel costs would cause consumers to retrench. Purchases increased 0.4 percent following a 1.1 percent February gain that was larger than previously estimated, Commerce Department figures showed today in Washington. A report from the Labor Department showed job openings in February jumped by the most in six years.
Treasuries Snap Two-Day Gain Before Inflation Reports, 30-Year Bond Sale (Source: Bloomberg)
Treasuries snapped a two-day gain before U.S. reports today and tomorrow that economists said will show wholesales prices and the cost of living rose last month.
U.S. trade data shows growth headwinds
WASHINGTON, April 12 (Reuters) - U.S. imports and exports fell in February, prompting analysts to cut again their forecasts for U.S. economic growth in early 2011 and showing signs of a slowing in the global recovery.
The trade gap totaled $45.8 billion and was down 2.6 percent from January as imports fell faster than exports, even as oil prices hit their highest level since October 2008, the Commerce Department said on Tuesday.
China’s Growth May Cool in Boost for Wen’s Inflation Campaign (Source: Bloomberg)
China’s growth probably slowed in the first quarter, helping to defuse the risk of overheating in an economy where inflation is estimated to be running at its fastest pace since 2008. The government will report tomorrow that gross domestic product rose 9.4 percent from a year earlier, according to the median estimate in a Bloomberg News survey of 25 economists, down from last year’s peak rate of 11.9 percent. Meantime, separate figures will show consumer prices climbed 5.2 percent in March from a year before, the median forecast indicates. A deceleration in the world’s second-biggest economy would help address inflation that billionaire investor George Soros warned this week is “somewhat out of control” in the aftermath of a record credit boom and higher commodity prices. Premier Wen Jiabao will need to use a stronger currency and some further increase in interest rates to help rein in prices, analysts said.
Singapore Economic Growth Quickens, Prompting Tighter Policy (Source: Bloomberg)
Singapore’s economy grew at the fastest pace in three quarters, an expansion that prompted the central bank to tighten its monetary policy. The country’s currency rose to a record. Gross domestic product rose at an annual rate of 23.5 percent last quarter from the previous three months, when it climbed 3.9 percent, the trade ministry said in a statement today. That compares with the 11.4 percent median estimate in a Bloomberg News survey of 14 economists. The central bank said separately it will re-center the exchange rate policy band upwards.
Japanese Stocks Fall as Yen Strengthens; Honda Motor, Canon, Olympus Drop (Source: Bloomberg)
Japanese stocks fell after the yen strengthened, adding to concern about the outlook for earnings at the nation’s exporters. Honda Motor Co., Japan’s No. 2 automaker by market value and which gets more than 80 percent of its revenue outside Japan, lost 0.2 percent. Canon Inc. (7751), which is the No. 1 camera maker worldwide and derives more than 80 percent of its revenue abroad, sank 0.3 percent. Olympus Corp. (7733), an optical-equipment maker, declined 1.4 percent as Goldman Sachs Group Inc. reduced earnings estimates for Japanese precision-equipment makers, reflecting the impact of last month’s record earthquake and tsunami.
Bank of Korea Must Raise Rate to at Least 4% to Cool Prices, Adviser Says (Source: Bloomberg)
The Bank of Korea should raise its benchmark interest rate to “at least” 4 percent this year to rein in inflation and household debt, an adviser to the nation’s central bank and finance ministry said. “Household debt needs to be handled while it’s still manageable,” Kim Tae Joon, president of Korea Institute of Finance, South Korea’s largest private financial think tank, said in an interview in Seoul yesterday. “We also have room to allow the won to strengthen further to curb inflation.”
Euro zone Feb output picks up by less than expected
BRUSSELS, April 13 (Reuters) - Industrial output in the euro zone accelerated by less than expected in February as manufacturing picked up in Germany and resumed growth in other bloc members but fell in bailout recipients Greece and Ireland.
Production in the 17 countries using the euro rose by 0.4 percent from January, the European Union's statistics office Eurostat said on Wednesday, below the 0.7 percent average forecast in a Reuters poll of 38 economists.
King Wins ‘Breathing Room’ to Keep BOE Rate on Hold After Data (Source: Bloomberg)
Bank of England Governor Mervyn King won respite from pressure to end record low interest rates as soon as next month after inflation unexpectedly slowed and retail sales plunged.
French Inflation Accelerates, Adding to Pressure on ECB to Raise Benchmark (Source: Bloomberg)
French inflation accelerated in March and German wholesale prices jumped the most in almost three decades, adding pressure on the European Central Bank to continue raising borrowing costs.
FOREX-Yen down as risk appetite rises, outlook still weak
NEW YORK, April 13 (Reuters) - The yen fell on Wednesday after rising four straight days against the dollar and euro, as risk appetite improved following gains in global stocks from better-than-expected JPMorgan earnings.
The Japanese currency's downtrend should stay intact as long as risk appetite holds up. The negative impact on the economy of the recent massive earthquake is expected to ensure Japanese monetary policy remains ultra-loose for a prolonged period.
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