- More on Japanese government ministers deny thinking of calling end to deflation
- Bank of Japan Governor Ueda spoke on Central Bank Digital Currency
- Why the Fed won't cut rates in 2024: US economy not slowing, Fed tailwind since December
- Suspected China state-backed buying to prop up stock markets
- ISM Services data due from the US on Tuesday - range to expect
- Why central bank rate cuts will be at a slower pace than rate hikes were
- Federal Reserve Vice Chair for Supervision Michael Barr is speaking twice on Tuesday
- China February Services PMI 52.5 (prior 52.7)
- China's Premier Li says the foundation of China's economic recovery is not yet solid
- PBOC sets USD/ CNY central rate at 7.1027 (vs. estimate at 7.1961)
- AMD said to have 'hit a roadblock' in selling an AI chip tailored for China
- Japan data - Jibun Bank Services PMI (final for February) 52.9 (prior 53.1)
- China says will keep the yuan exchange rate basically stable
- Australia data - Q4 2023 Current account balance smashes higher than estimates
- China warns of "worst case" scenario for economy
- New Zealand data - ANZ Commodity Price Index for February +3.5% m/m (prior +2.2%)
- China will target around 5% 2024 GDP growth (Work Report)
- Japan Economy Minister Shindo not thinking of declaring anything (re end of deflation)
- Tokyo area CPI data for February jumps higher from January
- ICYMI - BIS says tech stocks hitting an "extreme height"
- Weekly survey of Australian consumer sentiment falls to its lowest level of 2024 so far
- US authorities have delayed the BlackRock spot Ethereum ETF
- Deutsche Bank wary on US equities - this time is like the dot com bubble (sort of)
- Australian services PMI for February (final) comes in at 52.1 (prior 49.1)
- Forexlive Americas FX news wrap 4 Mar: Quiet Monday to start the trading week.
- More from Fed's Bostic - talks of "threat of what I’ll call pent-up exuberance"
- Stocks pull back and close lower on the day
- Trade ideas thread - Tuesday, 5 March, insightful charts, technical analysis, ideas
China’s target for economic growth in 2024 was announced as around 5 percent, as widely expected. This is the same as in 2023. In 2023 the budget deficit was 3.8% and for 2024 the deficit is targeted at 3%. So with what would appear to be less stimulus, not to mention the ongoing weights of debt, deflation, demographics and decoupling, the growth target is the same ... Good luck with that.
Other key items from China’s National People's Congress’s Work Report:
• Plans 1 trln yuan in new special government debt
• Aims to add 12 million urban jobs
• Aims for unemployment rate at around 5.5%
There is more info in the points above.
Oil prices fell away further during the session. China is the world's biggest crude importer and the measures announced to boost the economy did not rign true to the crude market.
Mainland Chinese stocks inched up a little, with reports of state-backed buyers propping up the market. Hong Kong’s Hang Seng fell.
For the geopolitical risk folks, China dropped its 'peaceful reunification' reference to Taiwan and raised defence spending by 7.2% in announcements at the NPC today.
Across FX ranges were mainly subdued.
From Japan today we had Tokyo area inflation for February (the national-level CPI will follow in around 3 weeks). ‘Core’ inflation (stripping out fresh food) re-accelerated in the month, which will add to arguments for a tightening on Bank of Japan policy. Of course, as we’ve been noting, wage data is the key. ‘Core-core’ (stripping out fresh food and energy) declined from January though.
BTC tickled its all time high. Not there yet.
