Except GBP, other global currencies ended flat
Sonal Badhan,
Economist,
Bank of Baroda
Mumbai, April 10, 2024: In some positive news for Germany, industrial production in Feb’24 rose by 2.1%
(MoM) versus est.: 0.3% increase and 1.3% increase in Jan’24. This was primarily
supported by better than expected performance of the construction sector (up by
7.9%). Manufacturing sector noted 1.9% growth, driven by auto (5.7%) and chemical
(4.6%) industries. However, compared with pre-pandemic period, production was still
8% lower in Feb’24. Separately in Asia, China is expected to report new Yuan loans
at 3.56tn in Feb’24, up from 1.45tn Yuan in Jan’24. In Japan, producer price
pressures remain subdued with CGPI up by only 0.2% (MoM) versus est.: 0.3%.
Reserve Bank of New Zealand, in line with expectations has kept its policy rate
unchanged at 5.5%, in order to bring inflation back to 1-3% range this year. Investors
now await US CPI report, due later today, for guidance on rates.
Global stocks ended mixed as investors await key inflation report from the US.
Markets in US were in wait and watch mode, while FTSE fell. Nikkei gained the
most, driven by chip-related stocks. Sensex ended lower and was dragged
down by losses in consumer durable and metal stocks. However, it is trading
higher today, while other Asian stocks are trading lower.
Except GBP, other global currencies ended flat. DXY was largely unchanged
ahead of the inflation data that will offer some guidance on interest rate outlook.
JPY continue to hover to near multi-decade low raising possibility of government
intervention. INR is trading stronger today, while Asian peers are trading mixed.
US, UK, and Germany’s 10Y yield broadly closed lower. Investors are awaiting
US CPI print. Atlanta Fed President spoke of one rate cut but hinted at some
additional easing if data warrants. This has supported yields. In Japan and
China, yields closed stable in absence of fresh cues. India’s 10Y yield inched up
by 3bps in the previous session. It is trading at lower at 7.12% today.
