A Quick Review of Global Events to Kick of Tuesday
kept its main rate on hold at 4.25% Tuesday, as expected. RBA Governor Stevens said, “Recent information is consistent with the expectation that the world economy will grow at a below-trend pace this year, but does not suggest that a deep downturn is occurring. With growth expected to be close to trend and inflation close to target, the board judged that the setting of monetary policy remained appropriate for the moment.”
From the USA on Monday: Only a dire situation would call for the Federal Reserve to buy more assets, and that is unlikely given the better-looking economic data, a top central bank official said on Monday. Dallas Fed President Richard Fisher, an outspoken policy hawk, added that he was perplexed by Wall Street’s continued preoccupation with the possibility that the Fed could engage in a third round of large-scale buying of assets
The services sector expanded at its fastest pace in a year in February helped by a gain in new orders and as the housing market shows signs of stabilizing. The Institute for Supply Management said its services index rose to 57.3 in February last month from 56.8 in January, in sharp contrast to economists’ expectations for a drop to 56.1. It was the index’s highest level since February 2011.
Major Greek bondholders announced their support for a deal that will deeply cut the value of their holdings as their contribution to keeping the country afloat. The steering committee of creditors, which includes 12 major investors in Greek bonds and was involved in drawing up last month’s landmark deal, said it would accept the bond swap offer
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Monday, Premier Wen Jiabao, in his annual state-of-the nation report to China’s parliament, reduces growth for 2012 of 7.5 percent. That would be the slowest pace of expansion since 1990 and well down on last year’s 9.2 percent growth rate.
In the Asian Session Tuesday, Crude-oil slipped, following falls across equity markets amid concerns about slowing global growth.
Oil had dipped in the US market to close below $107 a barrel but continued to be pressured by an assortment of economic data and China’s cut to its economic growth target continuing to slide to 106.70. as the Asian session closed.
Tuesday continues to be a very light day for economic indicators, leading up to Wednesday through Friday, which will inundate the markets with data, ranging from several central bank statements and policies, to the ADP Non Farms Report and the all important US Jobs reports on Friday.
Originally posted here
