Market rally continues on big week for central banks – business live

Discussion in 'Market News' started by Lily, Mar 14, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    All the day’s economic and financial news, as traders brace for news from the Fed, the Bank of England and the BoJ this week

    10.31am GMT

    Bloomberg agrees that this is a big week for monetary policy, but doesn’t expect any interest rate hikes or cuts:

    A big week for central banks @Bank_of_Japan_e, @federalreserve, @bankofengland all expected to keep rates unchanged

    10.30am GMT

    Here’s more details of the surprisingly decent eurozone factory data, from Howard Archer.

    There were widespread gains in output across sectors in January. In particular, capital goods output jumped 3.2% month-on-month while there were also healthy month-on-month gains for consumer non-durables (2.4%), durables goods (1.3%) and intermediate goods (0.9%). Additionally,energy output rebounded 2.4% month-on-month in January after a dip of 3.4% month-on-month in December when the weather was unseasonably mild.

    Among the major Eurozone countries, industrial production saw large month-on-month increases in January in Germany (2.9%), Italy (1.9%),France (1.4%) and the Netherlands (2.1%). There was also a mightily impressive jump of 12.7% in Ireland. However, Spanish output edged down 0.2% month-on-month in January.

    10.09am GMT

    Boom! Eurozone factories have reported a surprisingly strong increase in factory output.

    Industrial production across the single currency region surged by 2.1% month-on-month in January, and was 2.8% higher than a year ago.

    Euro area industrial production +2.1% in Jan 16 over Dec 15, +2.8% over Jan 15 #Eurostat

    Boost to Q1 2016 #Eurozone #GDP growth prospects as #industrial #production spikes 2.1% m/m in January with strong gains in all sectors

    Big beat of expectations.

    Very strong European output (2.1% vs 1.7% fcst) with upward revision. Markets ignore it.

    10.02am GMT

    Over in Bangladesh, the government has lashed out at the central bank after cyber thieves pinched $81m from its accounts.

    Finance Minister Abul Maal Abdul Muhith has promised a ‘major announcement’ shortly, and heavily criticised Bangladesh Bank for not alerting the government to the theft earlier.

    “Bangladesh Bank has the audacity not to inform me.....

    I am very unhappy about it. The handling of the matter by Bangladesh Bank is very incompetent.”

    Bangladesh's central bank is branded "incompetent" after hackers steal $101 million

    9.46am GMT

    Brent crude oil has fallen back below $40 per barrel this morning, after Iran sank hopes of a co-ordinated production cut.

    Tamas Varga, oil analyst at London brokerage PVM Oil Associates, explains (via Reuters):

    “Oil is down because Iran said they would only join the output freeze group once they reached production of 4 million barrels a day (bpd).”

    Brent crude oil is $40 as a drop in U.S. rigs offsets Iran's supply plans

    9.25am GMT

    Egypt’s central bank has just fired another shot in the currency wars, by devaluing its currency.

    In an unexpected move, the Egyptian Central Bank cut the value of the Egyptian pound by around 13%. That means one US dollar is now worth 8.85 Egyptian pounds, up from 7.73 before.

    Falling foreign currency inflows have been strangling businesses and threatening imports of basic necessities including medicines. A terrorist bomb that downed a Russian airliner caused a sharp drop in tourist numbers exacerbating already dollar shortages.

    Egypt Central Bank to Adopt More Flexible Exchange Rate

    @notayesmansecon Yep

    9.06am GMT

    In Frankfurt, traders have responded to Angela Merkel’s drubbing at the sending shares soaring.

    The DAX index has jumped over the 10,000 point mark for the first time since mid-January, making it the best-performing stock market today.

    During the campaign, CDU candidates in all three states had distanced themselves to varying degrees from their leader’s strategy for the refugee crisis.

    The politician who won in Baden-Württemberg’s, Green state premier Winfried Kretschmann, had passionately defended the German chancellor’s open-borders stance, stating in one day that he was “praying every day” for her wellbeing.

    CHART: Yes, #Merkel lost a few feathers yesterday but remains very popular. Just look at her approval rate. #wahlen

    8.41am GMT

    A breeze of optimism has pushed shares higher in London this morning.

    The FTSE 100 has jumped by 44 points, or 0.75%, to 6184 points. That adds to the 103-points jump recorded on Friday, as traders (belatedly) welcomed the European Central Bank’s latest stimulus package.

    At odds with the old adage “no news is good news”, it would appear it’s more a case of “all news is good news” when it comes to China.

    8.27am GMT

    China’s stock market has also enjoyed a solid day, with the Shanghai Composite index closing 1.7% higher.

    The rally was sparked by hopes of fresh intervention from Beijing, after a Chinese regulator said it’s too early to consider withdrawing government bailout funds from the market.

    Chinese data dreary-industrial/retail miss over weekend,but hey,who cares when regulator says gonna support stocks!?

    8.25am GMT

    Shares have pushed higher across Asia as the rally that began in Europe last Friday continues.

    “Investors seemed more confident that there is little chance of a March Fed hike this week, but they are anticipating some sort of guidance at the press conference.”

    8.02am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    After last week’s fireworks from the European Central Bank, the world’s other top central banks get their time in the spotlight this week.

    Recent developments have suggested Prime Minister Abe is applying pressure for even more ‘growth-friendly’ interventions, especially as Consumer Confidence last week added to the list of dismal data.

    BoJ Governor Kuroda has become quite skittish of late and his recent remarks that all was going well could presage a further bout of easing, albeit perhaps not this week.

    More economists in a @WSJ survey see the Fed waiting until June to raise rates

    Meanwhile, Governor Carney has in the past also been criticised for sending out false signals but he has been more consistent recently and, having resisted negative rates and more QE hitherto, is most unlikely to announce any changes on Thursday.

    Related: George Osborne fuels speculation budget will include nasty shocks

    Related: Anti-refugee AfD party makes dramatic gains in German elections

    Continue reading...

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