Deal Reached on Cyprus… Quiet Day from Data Standpoint

March 25, 2013

An agreement was forged between the creditor troika (ECB, EU, and IMF) and Cyprus that isolates Bank Laiku’s bad assets, permits bailout money to flow, and penalizes large shareholders and bondholders but not other depositors.  In the end, other EU governments flinched to avert a crisis.

Stocks are up 1.8% in France, 1.5% in Germany, 1.3% in Spain, 0.7% in Britain and 0.6% in Italy.  Japan’s Nikkei rallied 1.7%.  Stocks also rose 1.5% in South Korea,1.2% in Indonesia and 0.5% in Australia but slid0.4% in India and 0.2% in China.

The euro climbed above $1.3000 and is up 0.2% on balance.  The dollar has fallen 0.3% against the Aussie dollar, 0.2% versus the Swiss franc and 0.1% against the kiwi.  The dollar has risen 0.3% against the loonie, 0.2% against the yen and 0.1% relative to sterling.

The 10-year British gilt yield is three basis points firmer.  The German bund has edged up a basis point, and the JGB is steady at 0.57%.

Oil rose 0.4% to $94.11 per barrel.  Gold dipped 0.2% to $1604.10 per ounce.

Britain’s Hometrack house price index advanced 0.3% on month in March, most in three years and was unchanged on year.

British Bankers Association data indicate 30,506 mortgage approvals last month, fewer than January’s total of 31,983.

Finnish PPI inflation slowed to 0.1% in February from 0.7% in January.  Spanish PPI inflation likewise ebbed to 2.1% from 2.6% in January. 

CPI inflation accelerated to 4.9% in Singapore last month from 3.6% in January, thanks to a 1.0% month-on-month increase.

Consumer confidence in Italy weakened more than anticipated in March, printing at 85.2 after 86.0 in February.

Czech consumer confidence rose 1.5 points to a reading of negative 20.8 in March, but business confidence edged 0.1 points lower to 2.2.

As expected, the Bank of Israel did not modify its main 1.75% interest rate at this month’s meeting.

In the United States today, the Chicago Fed National Activity Index and the Dallas Fed manufacturing index get released.  Both Bernanke and New York Fed President Dudley have public appearances.  Britain’s distributive trades survey results are being released.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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