US Federal regulators closed down two
more banks, one in Colorado and one in North Carolina, bringing the
total of failed banks this year to 23. Economic data released this
holiday shortened week included the trade deficit for February, which
shrank by 28%, mainly due to collapsing US imports and consumer credit
for February, which came in at $7.5BN versus a revised $8.1Bn in
January. The Dow gained 0.8% over the week, with the S&P 500 and the
Nasdaq higher by 1.7% and 1.9% respectively.
Euro-Zone PPI in February fell by 1.8% whilst retail sales for the same
month fell by 4% year on year. Q408 GDP for the Zone was forecast at -4%
annualised and worse than expected. For the UK the February trade
deficit improved slightly whilst industrial production for the same
month collapsed by 12.5% year on year. The FTSE 100 index lost 1.1%,
whilst the French CAC and the German DAX were higher by 0.5% and 2.4%
respectively.
Out East, Japanese corporate bankruptcies rose to a 6 year high in
March, whilst the Government this week announced a $US153BN stimulus
package which is equal to 3% of GDP and will add to the debt that the
OECD already forecasts at 197% of GDP. Elsewhere, South Korea
authorities stated that a $100BN of state guarantees will be extended to
banks’ overseas debts and India’s industrial production in February fell
by the most in 14 years. The Nikkei and the Hang Seng both rose by 2.5%.
The $US index rose by 2% to 85.79 with the Mexican Peso another notable
winner, up by 3.3%, whilst on the downside the euro and the British
pound gave up 2.55 and 1.4% respectively. German 10-year bund yields
added 3 bps to 3.26%, whilst Japanese 10-year “JGB” yields gained 4bp,
ending the week at 1.45%. The US Treasury 5 year yield was flat over the
week, ending it at 1.89%, whilst the 10 year gained 0.6% to 2.93%.
Within the commodities complex the $crude oil price eased by 0.6% to
$52.2 a barrel, whilst the price of $Gold fell by 1%, ending the week at
$884oz.
Next week is another holiday shortened week for Euro-land and the UK,
with the former releasing March CPI and February trade data whilst the
UK announces March retail sales numbers. The US also releases March CPI
and advance retail sales plus the latest housing starts, whilst Japanese
consumer confidence and department store sales for March are also due .
The G20 meeting was a damp squid, with none of the Obama/Brown
objectives being achieved and in particular their hope of more
“collective stimulus plans,” albeit that they did agree to $US1 trillion
to Nations in need, via the auspices of a beefed up IMF. Thus far the
best part of $15 Trillion has been committed to reviving the global
economy by getting people to borrow more. Rather than ensuring massive
tax rises in the near future, they would have been better rewarded by
giving large tax cuts now.
“Did you ever notice that when you put the words
"The" and "IRS" together, it spells "THEIRS?”
[ Up ] [ Next ]
