There has been a lot of good news, as main indices top 2008 highs. Overnight we had China’s manufacturing PMI came in slightly better than expected at 51. Shows China’s manufacturing is growing.
In the Forex Market for those EURUSD spread betters, Technically, EUR/USD seems to have made a top after Bernanke’s speech. We might see a return to the downside. The Sterling is less clear, even though we saw BoE Weale ease on his Dovish stance. Over the next couple of days, we will see favour in the Dollar
Fed Chairman Ben Bernanke was less downbeat on the macroeconomic outlook. He highlighted that the pace of ‘the expansion has been uneven and modest by historical standard’, but he states growth in the coming quarters will likely be better than last year’s second quarter.
He also acknowledged the positive developments in the job market across all industries and acknowledged the decline in the unemployment rate over the past year. He did not hint to any QE3, as some were expecting.
In All in the US Manufacturing activities improved steadily throughout the nation. Nonfinancial services ‘remained stable or increased’. Consumer spending was ‘generally positive’ and sales in the near term seem to be ‘mostly optimistic’. The Job market had mixed signals but hiring increased slightly in various districts.
In Europe, Greek parliament approved the pension and health care spending cuts 213-58 votes. Papademos seems to be on target to meet most of the conditions the EU demanded in order to hand out the EUR 130b second bailout. EU finance ministers meet today in Brussels.Swiss GDP rose 0.1% qoq in Q4, above expectation of -0.1% qoq.
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