China’s consumer inflation fell to an 18-month low, rising by 0.7% year-on-year in March, slower than the 1.0% gain in February, indicating weak demand. The producer price index fell 2.5% year-on-year, the fastest decline since June 2020, falling for the sixth consecutive month. Food price inflation, a key driver of CPI, slowed to 2.4% year-on-year, and on a month-on-month basis, food prices fell 1.4%. The data supports the case for policymakers to take further steps to support the uneven economic recovery.
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 Unemployment Rate (Mar) decreased from 5.6% to 5.3%
Fixed Asset Investment (YoY) (Mar) decreased from 5.5% to 5.1%
GDP (QoQ) (Q1) increased from 0.6% to 2.2%
GDP (YoY) (Q1) increased from 2.9% to 4.5%
Chinese GDP YTD (YoY) (Q1) increased from 3.0% to 4.5%
Industrial Production (YoY) (Mar) increased from 2.4% to 3.9%
Chinese Industrial Production YTD (YoY) (Mar) increased from 2.4% to 3.0%
Some economic news from today:
GlobalDairyTrade Price Index increased from -4.7% to 3.2%
Wages in the UK rose faster than expected in February, with annual pay growth remaining at 5.9% for the three months to January and February, and wage growth, excluding bonuses, remaining at 6.6%. Economists believe this may lead to the Bank of England increasing interest rates despite a rise in joblessness. The unemployment rate in the UK increased to 3.8%, its highest since the second quarter of 2022. However, average earnings in the three months to February were 4.1% lower than a year earlier due to high inflation.
The major Europe stock markets had a green day today:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
Average Earnings Index +Bonus (Feb) remain the same at 5.9%
Claimant Count Change (Mar) increased from -18.8K to 28.2K
Employment Change 3M/3M (MoM) (Feb) increased from 65K to 169K
Unemployment Rate (Feb) increased from 3.7% to 3.8%
German ZEW Current Conditions (Apr) increased from -46.5 to -32.5
German ZEW Economic Sentiment (Apr) decreased from 13.0 to 4.1
ZEW Economic Sentiment (Apr) decreased from 10.0 to 6.4
Bank of Canada’s Tiff Macklem announced that he is prepared for a “soft landing” and not a recession. The bank previously raised interest rates eight consecutive times before holding the benchmark steady at 4.5% over the past two meetings. Macklem seems pleased with March’s 4.3% inflation reading, albeit over double his target. He said that the central bank is prepared to raise rates again if necessary to reach the 2% goal. As for the remainder of the year, Macklem said he expects “small positive” growth under 1% but above 0.
Boeing announced plans to increase production of its 737 Max aircrafts after experiencing delays over the past three years due to supply chain issues. CEO Dave Calhoun said that rate increases are already priced in and they have no plans to change their release schedule. The company will report Q1 earnings next week.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
The oil markets had a mixed day today:
The above data was collected around 13:01 EST on Tuesday
The above data was collected around 13:07 EST Tuesday.
Japan 0.474% (-0.9bp), US 2’s 4.22% (+0.028%), US 10’s 3.5794% (-1.16bps); US 30’s 3.79% (-0.015%), Bunds 2.491% (+1.1bp), France 2.979% (+1.2bp), Italy 4.308% (+0.3bp), Turkey 11.96% (-5bp), Greece 4.452% (+10.3bp), Portugal 3.319% (-1.8bp); Spain 3.511% (+1.1bp) and UK Gilts 3.748% (+5.8bp).
The post Market Talk – April 18, 2023 first appeared on Armstrong Economics.