US economic data released this week
included a $11.5BN decline in February consumer credit versus the
-$0.7BN expected, which is the 12th fall in 13 months. On a positive
front there was an 8.2% jump in pending home sales, far better than the
0% forecast. The Dow rose by 0.6% whilst the S&P 500 and the NASDAQ were
higher by 1.4% and 2.1% respectively.
Euro-Zone Q409 GDP came in at -2.2% year on year, worse than forecast,
whilst PPI in February for the zone declined by 0.5%, again worse than
expected. The ECB and the Bank of England MPC left interest rates on
hold, at 1% and 0.5% respectively, with the latter also confirming that
housing equity withdrawals in Q409 fell by £4BN against the £3BN
expected. The FTSE 100 index rose by 0.5%, whilst the French CAC
remained even over the week. The German DAX inched higher by 0.2%.
Out East the OZ Central Bank increased rates by a further ¼% to 4.25%,
as March unemployment remained at 5.3%. Elsewhere, China’s economy looks
set to grow at 12% in Q110, according to the China Securities Journal,
whilst the country’s passenger car sales in March soared by 63% as
government stimulus policies fuelled demand. The Nikkei fell by 0.7%
whilst the Hang Seng gained 3.1%.
The $US index dipped by 0.3% to 80.9, with other losers including the
Swiss franc, lower by 0.5%. Gainers included the Yen and the British
pound, rising by 1.5% and 1.1% respectively. Sovereign debt yields
remained jumpy this week as Fitch downgraded Greece to the lowest
investment grade. German bund yields rose by 8bps to 3.16% and UK
10-year yields jumped by 12bps to 4.04%, whilst Japanese JGB yields were
higher by 3bps, ending the week at 1.38%. For US Treasury yields, 5
years lost 1% to 2.56% whilst the 10 year declined by 6bps, ending the
week at 3.88%.
Within the commodities complex the $crude oil price crept higher to $85
a barrel, whilst the price of $Gold saw a 3.75% gain to $1162oz, its
best weekly return in 3 months.
Next week sees the latest trade data for the US, the UK and for the
Euro-zone, with March CPI numbers due out for the US and for Europe. The
UK releases March consumer confidence, whilst in Japan we get to see the
latest money supply and condo sales. All eyes and ears will be focussed
on the finance ministers of the 16 euro-zone member states who are
planned to meet up next Friday to discuss bailout plans for Greece,
unless of course the markets force an earlier decision on them.
Returning to the area of, “non personal responsibility,” the US Congress
chartered, “Financial Crisis Inquiry Commission,” held this week as part
of the ,”blame game witch hunt” saw former Fed Chairman, Alan Greenspan,
and Citigroup executives, Rubin and Prince, amongst others, witness
Politicians at their worst as they sought to distance themselves from
any responsibility in respect of the credit crisis suggesting that it
rested solely with the banking industry, whilst conveniently forgetting
that it was Congress who legislated to allow even the poorest of
Americans to take on massive amounts of debt to live the American dream.
Furthermore, it was Congress, after all, who preside over the Fed.
“It’s easy to dodge our responsibilities, but we
cannot dodge the consequences of dodging our
responsibilities"
