Ikon Daily Markets Analysis Economic Development: Central banks from Japan to the U.K. and euro zone review interest rates today, as investors await U.S. employment data to help gauge whether the Federal Reserve will start reducing stimulus this month. Nonfarm payrolls probably rose by 180K in August, according to a Bloomberg survey before tomorrow’s report. Data today will show claims for jobless benefits fell to 330K last week, from 331,000 in the previous week, according to a Bloomberg survey. U.S. economy maintained a “modest to moderate” pace of growth from July to August, the Fed said yesterday in its Beige Book survey. The central bank, which has said cuts to its bond buying program depend on continued improvement in the American economy and job market, will reduce purchases at its September meeting, according to 65 percent of economists surveyed by Bloomberg Aug. 9-13. Americans spending more on cars and housing helped the economy maintain a “modest to moderate” pace of expansion from early July through late August, even as borrowing costs increased, the Federal Reserve said today. ECB, BoJ as well as policy makers in the U.K. and Malaysia are all expected to keep benchmark rates at current levels in their reviews today. Data from China to Spain and the U.S. this week has indicated manufacturing sectors globally are starting to rebound. Oil traded near the lowest price in a week as the U.S. weighed limited military strikes on Syria, damping speculation that conflict will spread and disrupt oil supplies from the region. A resolution authorizing limited action against Syria is set to be considered by the full U.S. Senate as soon as next week after it was approved by the foreign relations panel. Australian government bonds due in a decade yielded 4.04 percent, up two basis points, or 0.02 percentage point to bring this week’s climb to 14 basis points. The Australian dollar, known as the Aussie, was little changed at 91.68 U.S. cents after yesterday’s 1.2 percent jump. The economy of Australia, which counts China as its No. 1 trading partner, expanded 2.6 percent last quarter, beating the median economist estimate and accelerating from 2.5 percent growth in the first three months of the year, data yesterday showed. The Reserve Bank of Australia also held rates at a record low this week.
Posted on: Thu, 05 Sep 2013 11:02:44 +0000
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