China is willing to “constructively” participate in solving the debt problems of relevant countries under a multilateral framework, its Premier Li Keqiang said on Wednesday. China, the world’s largest bilateral creditor, has criticized multilateral lenders for not accepting losses, or haircuts, on loans to low-income countries while Beijing is being asked to do so on credit it has extended on its own. China urged Group of 20 nations last month to conduct a fair, objective and in-depth analysis of the causes of global debt problems as calls mount for lenders to help debt-laden poor countries by accepting large losses on their loans. China is a major lender to high-debt countries, such as Ghana and Zambia.
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
Some economic news from last night:
Chinese Composite PMI (Feb) increased from 52.9 to 56.4
Manufacturing PMI (Feb) increased from 50.1 to 52.6
Non-Manufacturing PMI (Feb) increased from 54.4 to 56.3
Caixin Manufacturing PMI (Feb) increased from 49.2 to 51.6
AIG Manufacturing Index (Feb) increased from -17.1 to -6.4
CPI (YoY) decreased from 8.4% to 7.4%
GDP (QoQ) (Q4) decreased from 0.7% to 0.5%
GDP (YoY) (Q4) decreased from 5.9% to 2.7%
Building Consents (MoM) (Jan) increased from -7.1% to -1.5%
Some economic news from today:
Nikkei S&P Global Manufacturing PMI (Feb) decreased from 55.4 to 55.3
Commodity Prices (YoY) decreased from 10.6% to 3.6%
The European Central Bank’s top three shareholders charted different paths for interest rates on Wednesday, in a preview of the difficult debate awaiting the ECB in the coming weeks. The central bank governors of Germany, France and Italy, which have the three biggest stakes in the ECB, aired their views as data showed inflation unexpectedly rose in several euro zone economies this month, fueling investor bets on more ECB hikes. Money markets were expecting the ECB deposit rate to peak at 4% in December, from 2.5% at present, pricing in another 50-basis point increase in May and then a steady grind higher in the remainder of the year.
The major Europe stock markets had a mixed day:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
Nationwide HPI (YoY) (Feb) decreased from 1.1% to -1.1%
Nationwide HPI (MoM) (Feb) increased from -0.6% to -0.5%
Manufacturing PMI (Feb) increased from 49.2 to 49.3
Retail Sales (YoY) (Jan) increased from -3.0% to -2.2%
procure.ch PMI (Feb) decreased from 49.3 to 48.9
Spanish Manufacturing PMI (Feb) increased from 48.4 to 50.7
Italian Manufacturing PMI (Feb) increased from 50.4 to 52.0
French Manufacturing PMI (Feb) decreased from 47.9 to 47.4
German Manufacturing PMI (Feb) decreased from 46.5 to 46.3
German Unemployment Change (Feb) increased from -15K to 2K
German Unemployment Rate (Feb) remain the same at 5.5%
German CPI (YoY) (Feb) remain the same at 8.7%
German CPI (MoM) (Feb) decreased from 1.0% to 0.8%
Manufacturing PMI (Feb) decreased from 48.8 to 48.5
Eli Lily & Co. has committed to capping the price of insulin at $35 per month. Washington has been pushing drugmakers to reduce the price of insulin for years, and this is a major breakthrough for millions of Americans suffering from diabetes. The cost marks a 70% decline in cost and will go into effect on May 1. Other pharmaceutical companies are expected to slash prices on this life saving medication.
The Mortgage Bankers Association announced that US home sales have begun to fall. Despite rates dropping to the 6% range last week, volume was 44% lower year-over-year. Mortgage applications are now at a 28-year low as limited supply, high housing costs, and high interest rates have prices many potential buyers out of the market.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
The oil markets had a mixed day today:
The above data was collected around 12:04 EST on Wednesday
The above data was collected around 12:10 EST Wednesday.
Japan 0.504% (+0.3bp), US 2’s 4.87% (+0.069%), US 10’s 3.9709% (+5.69bps); US 30’s 3.94% (+0.007%), Bunds 2.705% (+7.1bp), France 3.185% (+6.6bp), Italy 4.558% (+8.5bp), Turkey 10.40% (+41bp), Greece 4.502% (+7.8bp), Portugal 3.600% (+8.5bp); Spain 3.736% (+5.8bp) and UK Gilts 3.84% (+1.6bp).
The post Market Talk – March 1, 2023 first appeared on Armstrong Economics.