Due to the NYSE closing for Presidents’ Day, Market Talk will resume on Tuesday, Feb. 21.
Singapore’s economy grew slightly less than initially estimated in the fourth quarter from a year ago, official data showed on Monday, and the government kept its forecast for annual growth to come in at 0.5% – 2.5% this year. Gross domestic product (GDP) grew 2.1% year-on-year in the fourth quarter, the Ministry of Trade and Industry (MTI) said, slightly lower than the 2.2% growth in the government’s advance estimate due to slightly weaker construction and service sector growth. Analysts said that some services industries would fare better this year amid China’s reopening, while manufacturing, especially electronics, is likely to weigh on growth in the short-term. Since April last year, Singapore had lifted most of its COVID-19 restrictions with many international events returning to the city-state, attracting tourists and businesses. The remaining restrictions will be relaxed from Monday. The Asian financial hub is expecting tourism to recover to pre-pandemic levels by 2024.
The major Asian stock markets had a negative day today:
The major Asian currency markets had a mixed day today:
No economic news from last night:
Some economic news from today:
FX Reserves, USD decreased from 575.27B to 566.95B
Russia’s central bank said on Friday that inflationary pressures across the economy had remained strong during the first two weeks of February, citing a slump in the rouble as a factor. Russia recorded inflation of 11.8% on an annual basis in January, almost three times the central bank’s official 4% target. It signaled last week it was preparing to raise base interest rates to cool inflation. The rouble has fallen 16% since the start of December when a European Union embargo and G7 price cap on Russian crude sales came into force.
The major Europe stock markets had a negative day:
The major Europe currency markets had a green day today:
Some economic news from Europe today:
Core Retail Sales (MoM) (Jan) increased from -1.4% to 0.4%
Core Retail Sales (YoY) (Jan) increased from -6.5% to -5.3%
Retail Sales (YoY) (Jan) increased from -6.1% to -5.1%
Retail Sales (MoM) (Jan) increased from -1.2% to 0.5%
German PPI (MoM) (Jan) decreased from -0.4% to -1.0%
French CPI (MoM) (Jan) increased from -0.1% to 0.4%
French HICP (MoM) (Jan) remain the same at 0.4%
The US economy is recovering, but has a long way to go, according to Federal Reserve Governor Michelle Bowman. “I think there’s a long way to go before we reach our 2% inflation objective and I think we’ll have to continue to raise the federal funds rate until we see a lot more progress on that,” she said this Friday. Her remarks one day after Cleveland Fed President Loretta Mester optimistically stated that price stability will improve in a meaningful way by the end of the year, with the 2% target being achieved by 2025. Yet various reports released this week indicate that inflation has not improved in a meaningful way.
The Conference Board’s Leading Economic Index projects that the US is heading into a recession. The index reported a 0.3% decline, which was in line with expectations. The index believes that conditions will deteriorate by 3.6% over the next six months. The Conference Board believes higher prices and rates combined with lower consumer spending will tilt the economy into a recession.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
The oil markets had a negative day today:
The above data was collected around 12:53 EST on Friday
The above data was collected around 13:12 EST on Friday
Japan 0.504%(+0.4bp), US 2’s 4.64% (+0.019%), US 10’s 3.8379%(-0.51bps); US 30’s 3.89% (-0.009%), Bunds 2.437% (-4.6bp), France 2.893% (-4.3bp), Italy 4.274% (-5bp), Turkey 10.50% (-19bp), Greece 4.33% (+1.7bp), Portugal 3.349% (-3.3bp); Spain 3.486% (-3.4bp) and UK Gilts 3.509% (+0.7bp).