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Canadian GDP posts surprise growth in Q4; loonie rises to 3-month high

Posted on March 1, 2016 at 3:48 pm GMT

Canada’s economy posted surprise growth in the final three months of 2015, expanding by 0.2% quarter-on-quarter and beating estimates of zero growth. This still represents a slowdown from the previous quarter though, when GDP rose by an upwardly revised 0.6% rate. On an annual basis, GDP was up by just 0.5% due to the two consecutive quarters of negative growth reported in the first half of 2015. Canada’s economy has been struggling since 2015 mainly as a result of the [..]

China RRR cut lifts markets but weak PMI point to more pain ahead

Posted on March 1, 2016 at 11:05 am GMT

China’s central bank surprised markets on Monday by cutting the reserve requirement ratio (RRR) for large banks by 50 bps to 17%. The move is the first monetary easing by the People’s Bank of China (PBOC) since October 2015 and the fifth cut to the RRR in the past year. The RRR is the proportion of cash that banks must hold as reserves and the latest reduction should boost liquidity in the economy by around $100 billion. The cut, which [..]

Eurozone slips back into deflation; pressure builds on ECB

Posted on February 29, 2016 at 12:09 pm GMT

Inflation in the Eurozone slipped back into negative territory in February according to the flash estimates by Eurostat. Annual CPI fell from 0.3% in January to -0.2% in February, which was below consensus forecasts of drop to 0.0%. This was the first negative reading since September 2015 and marks the end of four months of accelerating inflation. Core inflation was also weaker than expected, coming in at 0.8% year-on-year, against expectations of 0.9%. The core rate, which excludes food and energy [..]

US GDP in surprise upward revision; dollar/yen lifted to 1-week high

Posted on February 26, 2016 at 4:03 pm GMT

The US economy expanded by more than initially estimated in the final three months of 2015 as inventories rose by more than first reported. GDP grew at an annualized rate of 1% in the fourth quarter, up from initial estimates of 0.7% and above consensus forecasts of a 0.4% expansion. However, this still represents a slowdown from the 2.0% rate seen in the previous quarter. The main changes in the second estimate that drove the upward revision were higher inventories, [..]

Week Ahead – Busy week for Japan, Eurozone and US data; China PMI and RBA also eyed

Posted on February 26, 2016 at 1:32 pm GMT

It will be a data-packed week for Japan, the Eurozone and the United States in the next seven days with Japanese industrial production, Eurozone flash inflation and US NFP report among the major releases. Also headlining will be the latest manufacturing surveys out of China and the Reserve Bank of Australia’s March policy meeting. Japanese data will start the week on Monday with the release of industrial production and retail sales numbers for January. Industrial production is forecast to rebound [..]

Dollar firmer after US durable goods orders bounce back in January

Posted on February 25, 2016 at 3:33 pm GMT

Total new orders for manufactured durable goods in the United States jumped by 4.9% in January, reversing December’s upwardly revised 4.6% drop. Consensus forecasts were for a monthly increase of 2.5%. The data follows better-than-expected industrial production figures from last week that showed output increasing by 0.9% month-on-month in January. US manufacturers have been struggling since the second half of last year amid weak global demand and a strong dollar, relying on domestic demand to sustain growth. The latest figures [..]

Oil in retreat after Saudi Arabia rules out cut; doubts remain over freeze

Posted on February 24, 2016 at 2:07 pm GMT

Crude oil prices erased their gains made after the deal to freeze output was struck as Saudi Arabia’s oil minister yesterday ruled out cutting production anytime soon. Saudi Oil Minister Ali Al-Naimi, who was speaking at a conference in Houston, Texas, said on Tuesday that a production cut is “not going to happen” because he was sceptical about other countries enforcing it even if such a decision was taken. On February 16, OPEC members Saudi Arabia, Venezuela and Qatar reached [..]

Pound slumps to 7-year low vs dollar as Brexit campaign gathers pace

Posted on February 22, 2016 at 3:18 pm GMT

The British pound slumped to a 7-year low against the US dollar on Monday as those campaigning for the UK to leave the EU secured the support of the London Mayor, Boris Johnson. Sterling hit a 2009-low of 1.4056 versus the dollar, while the pound index fell to a near two-year low of 85.70. The uncertainty over the fate of Britain’s membership in the European Union also weighed on the euro, pushing it below 1.11 dollars, as a UK exit [..]

Eurozone PMI slows to 13-month low; increases odds of ECB easing in March

Posted on February 22, 2016 at 11:31 am GMT

Activity in the 19-member Eurozone slowed to the lowest level since January 2015 in February. The flash reading of the Markit composite PMI fell to 52.7 in February from 53.6 the prior month, far below expectations of 53.3. The figure extends the weak start to the year, with output slowing for a second straight month. The flash manufacturing PMI fell to a one-year low of 51.0 from 52.3 the prior month, falling short of expectations of 52.0. Services activity also [..]

US inflation rises to 14-month high in January; dollar spikes to 2-week high

Posted on February 19, 2016 at 3:54 pm GMT

Inflation in the United States rose to the highest rate in 14 months in January as the all-items consumer price index (CPI) climbed to 1.4% year-on-year. The figure was slightly above consensus estimates of 1.3%. On a month-on-month basis, CPI was unchanged from the previous month versus estimates of a 0.1% drop. Core CPI, which excludes food and energy items, also beat estimates, rising by 0.3% month-on-month versus the expected 0.2% rate, and by 2.2% year-on-year versus expectations of a [..]

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