China's central bank cut interest rate

Monday, March 02, 2015

China’s HSBC manufacturing PMI climbed higher to 50.7 in February compared to 50.1 in January, beating analysts’ expectations. Asian equity markets edged higher overnight as the Hang Seng index gained 0.21% towards 24,890, while the Nikkei index rose slightly 0.15% towards 18,850. China’s Central Bank announced a 0.25% interest rate cut over the weekend which improved market sentiment and increased risk appetite. Please note that it is the second time in three months that the Chinese central bank cuts rates in an attempt to boost the Chinese economy and eliminate the threat of deflation.

European equity markets opened fairly mixed this morning. The DAX and London equity benchmark edged higher, while the CAC slid slightly lower in early trade. The euro remained under heavy pressure hovering around 1.1150 against the USD, as investors remain cautious regarding Eurozone’s economic stability. The release of Markit manufacturing PMI data from Eurozone, UK and the US could provide insight regarding current manufacturing market conditions.  

EUR plunges towards 1.1150

EURUSD Curncy (EUR-USD X-RATE)   2015-03-02 08-51-58

The USD index spiked and rallied above 95.5 in early trade this morning. The recent US dollar strength has weighed on market sentiment, adding pressure to some commodity prices. Crude oil prices came under renewed pressure as Brent front month futures retreated towards $62 per barrel and WTI front month futures slid lower hovering below $50 per barrel.

USD index rallies above 95.50

DXY Curncy (DOLLAR INDEX SPOT)   2015-03-02 08-50-55      

Precious metal prices climbed higher as gold rebounded towards $1230/ounce and silver climbed towards $17 in early trade this morning.  

 

Events for today:

 

0145

CN

Feb

HSBC Manufacturing PMI

0855

DE

Feb

Markit Manufacturing PMI

0900

EZ

Feb

Markit Manufacturing PMI

0930

UK

Feb

Markit Manufacturing PMI

1330

US

Jan

PCE & Personal Income

1445

US

Feb

Markit Manufacturing PMI

1500

US

Feb

ISM Manufacturing

1500

US

Jan

Construction Spending

 

 

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