Fairly disappointing Chinese economic data weighed on market sentiment in early trade today, adding pressure to Asian equity markets. Industrial output increased by 17.9% in February missing analysts’ expectations of 19.4%, while retail sales rose by 8.6% in February compared to 9.7% in previous month. The Hang Seng index has retreated by 0.67% and the Nikkei index has also fallen into negative territory amid concerns over a further slowdown of the Chinese economy.
European equity markets have been trading sideways in early trade today, looking for some direction. The euro hit a fresh 2-1/2-year high, trading above 1.395 against the US dollar.
The UK RICS housing survey showed that house price growth eased in February with the price balance slowing to +45 compared to +53 in January.
New Zealand became the first developed nation to increase interest rates since the US commenced its QE tapering programme, citing a surge in the country’s dairy exports and a strong recovery in the construction sector. The Reserve Bank of New Zealand increased interest rates by 0.25% to 2.75% early this morning.
Oil: Brent futures edged higher holding above $108 per barrel, supported by the on-going political uncertainty in Ukraine. In addition, OPEC said that global oil demand will increase more than expected in 2014, raising its prediction for a second consecutive month due to a steady but strong economic recovery in the US and Europe.
Gold extended gains for a third consecutive trading session, eyeing a fresh six-month high as investors are looking for opportunities to hedge their positions against the geopolitical tensions in Ukraine and economic slowdown concerns in China.
CN |
Feb |
Retail Sales |
|
CN |
Feb |
Industrial Output |
|
0001 |
UK |
Feb |
RICS House Prices |
1230 |
US |
Jan |
Retail Sales |
1230 |
US |
w/e |
Jobless Claims |
1230 |
US |
Feb |
Import/Export Prices |
1400 |
US |
Jan |
Business Inventories |
1530 |
US |
w/e |
EIA Nat Gas |
All times UK Local Time