Notes from My Desk – Economic Events Around the World Today

By FXEmpire.com

Asia:

Further evidence of sluggish growth by the Australian economy emerged Thursday with a key survey of industrial trends again emphasizing weakness in the non-mining sector. The Westpac-ACCI Actual Composite edged lower in the first quarter to 47.4, from 48.2

Australia, China central banks sign A$30 billion currency swap deal. — Deal illustrates growing links between both countries. — Could spur Aussie companies to settle in yuan.

Japan swung back to a trade surplus in February, defying expectations for a deficit as shipments to the U.S. jumped. Japan logged a 32.9 billion yen ($395 million) surplus from the month, after January’s ?1.475 trillion deficit, the Ministry reported today.

Japan signed with Kuwait on Thursday an accord to facilitate mutual investments, marking its first investment treaty with a member of the Gulf Cooperation Council, Kyodo News reported Thursday

In New Zealand, economists expect GDP in the final three months of 2011 to have slowed to 0.6 per cent from 0.8 per cent in the September quarter. The actual came in well under expectation as 0.3%.

The data comes a day after government figures showed the current account deficit narrowed more than expected in the fourth quarter, amid record exports of dairy products and smaller dividends paid out to foreigners.

China manufacturing activity fell sharply in March as the rate of booking new orders fell to a four-month low at factories, leading to weaker generation of jobs, according to an initial reading of findings in an HSBC survey released Thursday.

Retail sales in China are likely to grow around 15% this year, said a government think tank in a report cited by the state-run Economic Information Daily Thursday. Consumption will surpass investment as the biggest driver of economic growth.

Chinese factory activity is slowing sharply, dragging on employment amid a deepening slowdown in global demand and aggravated by a stall in domestic consumption, according to new data.

Eurozone:

Swiss watch exports rose 21.5% on year in February, driven by continued strong demand in Asia and recovering sales in the U.S., data released Thursday by Switzerland’s customs office showed.

A contraction in private-sector activity across the 17-nation euro zone accelerated in March, underlining fears the region has fallen back into recession, according to a preliminary composite purchasing manager’s index, (PMI).

February British retail sales volumes fell 0.8% from January and were up 1% compared to February 2011, the U.K. Office for National Statistics reported Thursday. Economists surveyed by Dow Jones Newswires had forecast a 0.4% monthly fall.

Spanish and Italian government bond prices fell further on Thursday, pushing up yields amid ongoing worries over Spain’s fiscal outlook and weak economic data out of the euro zone, analysts said.

United States:

The News the markets have been waiting for and hoping for. The number of Americans who filed requests for jobless benefits fell by 5,000 last week to 348,000, the lowest level since February 2008, the U.S. Labor Department said Thursday. Claims from two weeks ago were revised up to 353,000 from 351,000.

Applications for weekly unemployment benefits set a new four-year low, the government reports Thursday, in another sign that the U.S. labor market continues to gradually improve.

In the week ending March 17, the advance figure for seasonally adjusted initial claims was 348,000, a decrease of 5,000 from the previous week’s revised figure of 353,000. The 4-week moving average was 355,000, a decrease of 1,250 from the previous week’s revised average of 356,250.

Also in the US, the EIA weekly Natural Gas report showed a higher then expect volume of Gas in storage exceeded forecast by a 1 billion cubic feet.

President Barack Obama on Thursday fast-tracked approval of an oil pipeline, continuing a nationwide tour to promote his energy policies with gasoline prices on the rise.

Originally posted here